It hasn't been the best quarter for TBC Bank Group PLC (LON:TBCG) shareholders, since the share price has fallen 14% in that time. But that doesn't change the fact that the returns over the last year have been pleasing. After all, the share price is up a market-beating 39% in that time.
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
Over the last twelve months, TBC Bank Group actually shrank its EPS by 41%.
This means it's unlikely the market is judging the company based on earnings growth. Therefore, it seems likely that investors are putting more weight on metrics other than EPS, at the moment.
TBC Bank Group's revenue actually dropped 23% over last year. So the fundamental metrics don't provide an obvious explanation for the share price gain.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.
A Different Perspective
It's nice to see that TBC Bank Group shareholders have gained 39% (in total) over the last year. That certainly beats the loss of about 10% per year over three years. The optimist would say this is evidence that the stock has bottomed, and better days lie ahead. If you would like to research TBC Bank Group in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.
For those who like to find winning investments this free list of growing 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 GB exchanges.
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