Mulsanne Group Holding's(HKG:1817) Share Price Is Down 30% Over The Past Year.

Mulsanne Group Holding Limited (HKG:1817) shareholders should be happy to see the share price up 27% in the last month. But in truth the last year hasn't been good for the share price. In fact the stock is down 30% in the last year, well below the market return.

See our latest analysis for Mulsanne Group Holding

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 flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During the last year Mulsanne Group Holding saw its earnings per share drop below zero. While this may prove temporary, we'd consider it a negative, so it doesn't surprise us that the stock price is down. Of course, if the company can turn the situation around, investors will likely profit.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

Dive deeper into Mulsanne Group Holding's key metrics by checking this interactive graph of Mulsanne Group Holding's earnings, revenue and cash flow.

A Different Perspective

Given that the market gained 11% in the last year, Mulsanne Group Holding shareholders might be miffed that they lost 30%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Putting aside the last twelve months, it's good to see the share price has rebounded by 5.9%, in the last ninety days. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). It's always interesting to track share price performance over the longer term. But to understand Mulsanne Group Holding better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Mulsanne Group Holding , and understanding them should be part of your investment process.

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