If You Had Bought Bank Millennium's (WSE:MIL) Shares Three Years Ago You Would Be Down 59%

Bank Millennium S.A. (WSE:MIL) shareholders will doubtless be very grateful to see the share price up 63% in the last quarter. Meanwhile over the last three years the stock has dropped hard. Tragically, the share price declined 59% in that time. So it is really good to see an improvement. The rise has some hopeful, but turnarounds are often precarious.

Check out our latest analysis for Bank Millennium

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Bank Millennium saw its EPS decline at a compound rate of 37% per year, over the last three years. This fall in the EPS is worse than the 26% compound annual share price fall. This suggests that the market retains some optimism around long term earnings stability, despite past EPS declines.

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

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

A Different Perspective

Bank Millennium shareholders are down 34% for the year, but the market itself is up 1.3%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 4% per year over five years. 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. It's always interesting to track share price performance over the longer term. But to understand Bank Millennium better, we need to consider many other factors. To that end, you should learn about the 4 warning signs we've spotted with Bank Millennium (including 1 which is a bit unpleasant) .

We will like Bank Millennium 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 PL 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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