Unitronics (1989) (RG) (TLV:UNIT) Share Prices Have Dropped 34% In The Last Three Years

It is doubtless a positive to see that the Unitronics (1989) (R"G) Ltd (TLV:UNIT) share price has gained some 70% in the last three months. But that cannot eclipse the less-than-impressive returns over the last three years. In fact, the share price is down 34% in the last three years, falling well short of the market return.

Check out our latest analysis for Unitronics (1989) (RG)

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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.

Unitronics (1989) (RG) became profitable within the last five years. That would generally be considered a positive, so we are surprised to see the share price is down. So it's worth looking at other metrics to try to understand the share price move.

We think that the revenue decline over three years, at a rate of 6.4% per year, probably had some shareholders looking to sell. After all, if revenue keeps shrinking, it may be difficult to find earnings growth in the future.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. It might be well worthwhile taking a look at our free report on Unitronics (1989) (RG)'s earnings, revenue and cash flow.

A Different Perspective

It's nice to see that Unitronics (1989) (RG) shareholders have received a total shareholder return of 18% over the last year. There's no doubt those recent returns are much better than the TSR loss of 1.5% per year over five years. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand Unitronics (1989) (RG) better, we need to consider many other factors. For example, we've discovered 2 warning signs for Unitronics (1989) (RG) that you should be aware of before investing here.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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

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