Koninklijke BAM Groep's (AMS:BAMNB) Shareholders Are Down 70% On Their Shares

If you love investing in stocks you're bound to buy some losers. But the long term shareholders of Koninklijke BAM Groep nv (AMS:BAMNB) have had an unfortunate run in the last three years. Unfortunately, they have held through a 70% decline in the share price in that time. And more recent buyers are having a tough time too, with a drop of 52% in the last year. Unfortunately the share price momentum is still quite negative, with prices down 21% in thirty days.

View our latest analysis for Koninklijke BAM Groep

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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.

Koninklijke BAM Groep saw its EPS decline at a compound rate of 37% per year, over the last three years. This fall in EPS isn't far from the rate of share price decline, which was 33% per year. So it seems that investor expectations of the company are staying pretty steady, despite the disappointment. Rather, the share price has approximately tracked EPS growth.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

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

What about the Total Shareholder Return (TSR)?

Investors should note that there's a difference between Koninklijke BAM Groep's total shareholder return (TSR) and its share price change, which we've covered above. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Koninklijke BAM Groep's TSR of was a loss of 68% for the 3 years. That wasn't as bad as its share price return, because it has paid dividends.

A Different Perspective

We regret to report that Koninklijke BAM Groep shareholders are down 52% for the year (even including dividends) . Unfortunately, that's worse than the broader market decline of 8.0%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 17% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand Koninklijke BAM Groep better, we need to consider many other factors. Take risks, for example - Koninklijke BAM Groep has 3 warning signs we think you should be aware of.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on NL 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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