G N A Axles' (NSE:GNA) Shareholders Are Down 25% On Their Shares

It is a pleasure to report that the G N A Axles Limited (NSE:GNA) is up 35% in the last quarter. But that doesn't help the fact that the three year return is less impressive. After all, the share price is down 25% in the last three years, significantly under-performing the market.

Check out our latest analysis for G N A Axles

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...' 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.

G N A Axles saw its EPS decline at a compound rate of 17% per year, over the last three years. This fall in the EPS is worse than the 9% compound annual share price fall. This suggests that the market retains some optimism around long term earnings stability, despite past EPS declines.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.

A Different Perspective

Over the last year G N A Axles shareholders have received a TSR of 15%. While you don't go broke making a profit, this return was actually lower than the average market return of about 20%. The silver lining is that the recent rise is far preferable to the annual loss of 7% that shareholders have suffered over the last three years. We hope the turnaround in fortunes continues. 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 instance, we've identified 3 warning signs for G N A Axles that you should be aware of.

But note: G N A Axles 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 IN 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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