Would Shareholders Who Purchased Zee Learn's (NSE:ZEELEARN) Stock Three Years Be Happy With The Share price Today?

Zee Learn Limited (NSE:ZEELEARN) shareholders should be happy to see the share price up 24% in the last month. Meanwhile over the last three years the stock has dropped hard. Regrettably, the share price slid 62% in that period. So the improvement may be a real relief to some. Perhaps the company has turned over a new leaf.

See our latest analysis for Zee Learn

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.

Zee Learn saw its share price decline over the three years in which its EPS also dropped, falling to a loss. Due to the loss, it's not easy to use EPS as a reliable guide to the business. But it's safe to say we'd generally expect the share price to be lower as a result!

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

Dive deeper into Zee Learn's key metrics by checking this interactive graph of Zee Learn's earnings, revenue and cash flow.

A Different Perspective

Zee Learn shareholders are up 3.7% for the year. Unfortunately this falls short of the market return. But at least that's still a gain! Over five years the TSR has been a reduction of 9% per year, over five years. So this might be a sign the business has turned its fortunes around. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Zee Learn (of which 1 is a bit concerning!) you should know about.

We will like Zee Learn better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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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