Satin Creditcare Network (NSE:SATIN) shareholders are still up 112% over 3 years despite pulling back 13% in the past week

Satin Creditcare Network Limited (NSE:SATIN) shareholders might be concerned after seeing the share price drop 27% in the last quarter. In contrast, the return over three years has been impressive. In three years the stock price has launched 112% higher: a great result. To some, the recent share price pullback wouldn't be surprising after such a good run. Only time will tell if there is still too much optimism currently reflected in the share price.

While this past week has detracted from the company's three-year return, let's look at the recent trends of the underlying business and see if the gains have been in alignment.

Check out our latest analysis for Satin Creditcare Network

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

During three years of share price growth, Satin Creditcare Network moved from a loss to profitability. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

We know that Satin Creditcare Network has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling Satin Creditcare Network stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

While the broader market gained around 44% in the last year, Satin Creditcare Network shareholders lost 27%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 4% per year over five years. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. It's always interesting to track share price performance over the longer term. But to understand Satin Creditcare Network better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Satin Creditcare Network (of which 1 doesn't sit too well with us!) you should know about.

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 Indian exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.