Would Shareholders Who Purchased Amir Marketing and Investments in Agriculture's (TLV:AMRK) Stock Year Be Happy With The Share price Today?

It's easy to match the overall market return by buying an index fund. Active investors aim to buy stocks that vastly outperform the market - but in the process, they risk under-performance. That downside risk was realized by Amir Marketing and Investments in Agriculture Ltd. (TLV:AMRK) shareholders over the last year, as the share price declined 18%. That contrasts poorly with the market return of 2.9%. Zooming out, the stock is down 17% in the last three years. It's up 2.3% in the last seven days.

Check out our latest analysis for Amir Marketing and Investments in Agriculture

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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).

Unhappily, Amir Marketing and Investments in Agriculture had to report a 94% decline in EPS over the last year. The share price fall of 18% isn't as bad as the reduction in earnings per share. So despite the weak per-share profits, some investors are probably relieved the situation wasn't more difficult. With a P/E ratio of 128.52, it's fair to say the market sees an EPS rebound on the cards.

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

Dive deeper into Amir Marketing and Investments in Agriculture's key metrics by checking this interactive graph of Amir Marketing and Investments in Agriculture's earnings, revenue and cash flow.

A Different Perspective

Amir Marketing and Investments in Agriculture shareholders are down 17% for the year (even including dividends), but the market itself is up 2.9%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 4%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand Amir Marketing and Investments in Agriculture better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for Amir Marketing and Investments in Agriculture you should be aware of, and 1 of them can't be ignored.

But note: Amir Marketing and Investments in Agriculture may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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

If you’re looking to trade Amir Marketing and Investments in Agriculture, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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