BNP Paribas Bank Polska (WSE:BNP) Share Prices Have Dropped 29% In The Last Three Years

BNP Paribas Bank Polska S.A. (WSE:BNP) shareholders should be happy to see the share price up 26% 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 29% in the last three years, falling well short of the market return.

Check out our latest analysis for BNP Paribas Bank Polska

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.

Although the share price is down over three years, BNP Paribas Bank Polska actually managed to grow EPS by 19% per year in that time. Given the share price reaction, one might suspect that EPS is not a good guide to the business performance during the period (perhaps due to a one-off loss or gain). Alternatively, growth expectations may have been unreasonable in the past.

Since the change in EPS doesn't seem to correlate with the change in share price, it's worth taking a look at other metrics.

Revenue is actually up 25% over the three years, so the share price drop doesn't seem to hinge on revenue, either. It's probably worth investigating BNP Paribas Bank Polska further; while we may be missing something on this analysis, there might also be an opportunity.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

We know that BNP Paribas Bank Polska has improved its bottom line lately, but what does the future have in store? This free report showing analyst forecasts should help you form a view on BNP Paribas Bank Polska

A Different Perspective

While the broader market lost about 7.3% in the twelve months, BNP Paribas Bank Polska shareholders did even worse, losing 25%. 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 0.2% over the last half decade. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. 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. Take risks, for example - BNP Paribas Bank Polska has 1 warning sign 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 PL exchanges.

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