How Much Did Guerbet's(EPA:GBT) Shareholders Earn From Share Price Movements Over The Last Three Years?

Guerbet SA (EPA:GBT) shareholders should be happy to see the share price up 14% in the last quarter. But over the last three years we've seen a quite serious decline. Indeed, the share price is down a tragic 58% in the last three years. So the improvement may be a real relief to some. Perhaps the company has turned over a new leaf.

View our latest analysis for Guerbet

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During the three years that the share price fell, Guerbet's earnings per share (EPS) dropped by 13% each year. The share price decline of 25% is actually steeper than the EPS slippage. So it seems the market was too confident about the business, in the past.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

This free interactive report on Guerbet's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Guerbet the TSR over the last 3 years was -56%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

The total return of 2.6% received by Guerbet shareholders over the last year isn't far from the market return of -2.8%. However, the loss over the last year isn't as bad as the 9% per annum loss investors have suffered over the last half decade. It could well be that the business has begun to stabilize, although we'd be hesitant to buy without clear information suggesting the company will grow. 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. For example, we've discovered 3 warning signs for Guerbet that you should be aware of before investing here.

Of course Guerbet may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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

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This article by Simply Wall St is general in nature. 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.
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