How Much Did Ultrafabrics HoldingsLtd's(TYO:4235) Shareholders Earn From Share Price Movements Over The Last Three Years?

It's not possible to invest over long periods without making some bad investments. But you have a problem if you face massive losses more than once in a while. So spare a thought for the long term shareholders of Ultrafabrics Holdings Co.,Ltd. (TYO:4235); the share price is down a whopping 72% in the last three years. That would be a disturbing experience. The more recent news is of little comfort, with the share price down 34% in a year. It's down 1.5% in the last seven days.

Check out our latest analysis for Ultrafabrics HoldingsLtd

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 three years that the share price fell, Ultrafabrics HoldingsLtd's earnings per share (EPS) dropped by 69% each year. In comparison the 35% compound annual share price decline isn't as bad as the EPS drop-off. So the market may not be too worried about the EPS figure, at the moment -- or it may have previously priced some of the drop in. This positive sentiment is also reflected in the generous P/E ratio of 64.90.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

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

A Different Perspective

Investors in Ultrafabrics HoldingsLtd had a tough year, with a total loss of 32% (including dividends), against a market gain of about 6.3%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 3% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. 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 5 warning signs for Ultrafabrics HoldingsLtd (of which 1 makes us a bit uncomfortable!) you should know about.

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 JP 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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