Waterbase's (NSE:WATERBASE) Stock Price Has Reduced 13% In The Past Year

The Waterbase Limited (NSE:WATERBASE) shareholders should be happy to see the share price up 22% in the last quarter. But in truth the last year hasn't been good for the share price. After all, the share price is down 13% in the last year, significantly under-performing the market.

Check out our latest analysis for Waterbase

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Unfortunately Waterbase reported an EPS drop of 70% for the last year. This fall in the EPS is significantly worse than the 13% the share price fall. So despite the weak per-share profits, some investors are probably relieved the situation wasn't more difficult. Indeed, with a P/E ratio of 65.71 there is obviously some real optimism that earnings will bounce back.

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

This free interactive report on Waterbase's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

While Waterbase shareholders are down 13% for the year, the market itself is up 22%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Putting aside the last twelve months, it's good to see the share price has rebounded by 22%, in the last ninety days. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). It's always interesting to track share price performance over the longer term. But to understand Waterbase better, we need to consider many other factors. For instance, we've identified 2 warning signs for Waterbase that you should be aware of.

But note: Waterbase 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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