Recent 13% pullback isn't enough to hurt long-term Marie Brizard Wine & Spirits (EPA:MBWS) shareholders, they're still up 183% over 3 years

Marie Brizard Wine & Spirits SA (EPA:MBWS) shareholders might be concerned after seeing the share price drop 13% in the last week. In contrast, the return over three years has been impressive. The share price marched upwards over that time, and is now 183% higher than it was. To some, the recent share price pullback wouldn't be surprising after such a good run. Only time will tell if there is still too much optimism currently reflected in the share price.

Since the long term performance has been good but there's been a recent pullback of 13%, let's check if the fundamentals match the share price.

See our latest analysis for Marie Brizard Wine & Spirits

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Marie Brizard Wine & Spirits became profitable within the last three years. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

We know that Marie Brizard Wine & Spirits has improved its bottom line over the last three years, but what does the future have in store? Take a more thorough look at Marie Brizard Wine & Spirits' financial health with this free report on its balance sheet.

A Different Perspective

It's nice to see that Marie Brizard Wine & Spirits shareholders have received a total shareholder return of 46% over the last year. That's better than the annualised return of 13% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Marie Brizard Wine & Spirits you should know about.

For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on French exchanges.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.