Reflecting on Accelya Solutions India's (NSE:ACCELYA) Share Price Returns Over The Last Three Years

Accelya Solutions India Limited (NSE:ACCELYA) shareholders should be happy to see the share price up 14% in the last month. But that doesn't change the fact that the returns over the last three years have been less than pleasing. In fact, the share price is down 33% in the last three years, falling well short of the market return.

View our latest analysis for Accelya Solutions India

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...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During the three years that the share price fell, Accelya Solutions India's earnings per share (EPS) dropped by 13% each year. This change in EPS is reasonably close to the 12% average annual decrease in the share price. That suggests that the market sentiment around the company hasn't changed much over that time, despite the disappointment. It seems like the share price is reflecting the declining earnings per share.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

It might be well worthwhile taking a look at our free report on Accelya Solutions India's earnings, revenue and cash flow.

What about the Total Shareholder Return (TSR)?

We've already covered Accelya Solutions India's share price action, but we should also mention its total shareholder return (TSR). Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Its history of dividend payouts mean that Accelya Solutions India's TSR, which was a 27% drop over the last 3 years, was not as bad as the share price return.

A Different Perspective

Accelya Solutions India shareholders gained a total return of 1.9% during the year. Unfortunately this falls short of the market return. On the bright side, the longer term returns (running at about 4% a year, over half a decade) look better. It may well be that this is a business worth popping on the watching, given the continuing positive reception, over time, from the market. It's always interesting to track share price performance over the longer term. But to understand Accelya Solutions India better, we need to consider many other factors. For example, we've discovered 2 warning signs for Accelya Solutions India that you should be aware of before investing here.

But note: Accelya Solutions India 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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