Even though BF Utilities (NSE:BFUTILITIE) has lost ₹1.9b market cap in last 7 days, shareholders are still up 46% over 1 year

By
Simply Wall St
Published
August 20, 2021
NSEI:BFUTILITIE
Source: Shutterstock

It might be of some concern to shareholders to see the BF Utilities Limited (NSE:BFUTILITIE) share price down 21% in the last month. Looking on the brighter side, the stock is actually up over twelve months. But to be blunt its return of 46% fall short of what you could have got from an index fund (around 53%).

Although BF Utilities has shed ₹1.9b from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.

See our latest analysis for BF Utilities

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

During the last year BF Utilities saw its earnings per share (EPS) drop below zero. While this may prove temporary, we'd consider it a negative, so we would not have expected to see the share price up. It may be that the company has done well on other metrics.

BF Utilities' revenue actually dropped 31% over last year. So the fundamental metrics don't provide an obvious explanation for the share price gain.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth
NSEI:BFUTILITIE Earnings and Revenue Growth August 21st 2021

This free interactive report on BF Utilities' balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

BF Utilities provided a TSR of 46% over the last twelve months. But that was short of the market average. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 6% endured over half a decade. So this might be a sign the business has turned its fortunes around. It's always interesting to track share price performance over the longer term. But to understand BF Utilities better, we need to consider many other factors. Take risks, for example - BF Utilities has 4 warning signs (and 3 which are concerning) we think you should know about.

But note: BF Utilities 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.

If you decide to trade BF Utilities, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted


Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.