Techno Electric & Engineering's(NSE:TECHNOE) Share Price Is Down 20% Over The Past Year.

Techno Electric & Engineering Company Limited (NSE:TECHNOE) shareholders should be happy to see the share price up 11% in the last month. But that is minimal compensation for the share price under-performance over the last year. The cold reality is that the stock has dropped 20% in one year, under-performing the market.

See our latest analysis for Techno Electric & Engineering

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...' 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.

Unhappily, Techno Electric & Engineering had to report a 8.1% decline in EPS over the last year. This reduction in EPS is not as bad as the 20% share price fall. Unsurprisingly, given the lack of EPS growth, the market seems to be more cautious about the stock.

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

It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. This free interactive report on Techno Electric & Engineering's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

While Techno Electric & Engineering shareholders are down 20% for the year, the market itself is up 8.8%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. It's great to see a nice little 8.5% rebound in the last three months. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). Is Techno Electric & Engineering cheap compared to other companies? These 3 valuation measures might help you decide.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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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