Reflecting on Marathon Nextgen Realty's (NSE:MARATHON) Share Price Returns Over The Last Three Years

It is doubtless a positive to see that the Marathon Nextgen Realty Limited (NSE:MARATHON) share price has gained some 93% in the last three months. But that doesn't change the fact that the returns over the last three years have been disappointing. In that time, the share price dropped 68%. So it's good to see it climbing back up. Perhaps the company has turned over a new leaf.

See our latest analysis for Marathon Nextgen Realty

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. 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.

During the three years that the share price fell, Marathon Nextgen Realty's earnings per share (EPS) dropped by 15% each year. This reduction in EPS is slower than the 32% annual reduction in the share price. So it's likely that the EPS decline has disappointed the market, leaving investors hesitant to buy.

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

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

A Different Perspective

Marathon Nextgen Realty shareholders have gained 21% over twelve months. This isn't far from the market return of 22%. Shareholders can take comfort that it's certainly better than the yearly loss of about 19% per year endured over the last three years. The optimist would say that this might be the dawn of a brighter future. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for Marathon Nextgen Realty (of which 2 are a bit unpleasant!) you should know about.

We will like Marathon Nextgen Realty 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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