Satia Industries (NSE:SATIA) shareholders YoY returns are lagging the company's 105% one-year earnings growth

Simply Wall St
May 13, 2022
Source: Shutterstock

Satia Industries Limited (NSE:SATIA) shareholders have seen the share price descend 19% over the month. While that might be a setback, it doesn't negate the nice returns received over the last twelve months. In that time we've seen the stock easily surpass the market return, with a gain of 33%.

While the stock has fallen 12% this week, it's worth focusing on the longer term and seeing if the stocks historical returns have been driven by the underlying fundamentals.

View our latest analysis for Satia Industries

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 the last year Satia Industries grew its earnings per share (EPS) by 105%. This EPS growth is significantly higher than the 33% increase in the share price. So it seems like the market has cooled on Satia Industries, despite the growth. Interesting.

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

NSEI:SATIA Earnings Per Share Growth May 13th 2022

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

A Different Perspective

It's nice to see that Satia Industries shareholders have gained 33% over the last year, including dividends. That's better than the more recent three month gain of 4.5%, implying that share price has plateaued recently. It seems likely the market is waiting on fundamental developments with the business before pushing the share price higher (or lower). 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. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Satia Industries , and understanding them should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will 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.

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.