Estoril Sol SGPS (ELI:ESON) Share Prices Have Dropped 56% In The Last Three Years

If you love investing in stocks you're bound to buy some losers. But long term Estoril Sol, SGPS, S.A. (ELI:ESON) shareholders have had a particularly rough ride in the last three year. Regrettably, they have had to cope with a 56% drop in the share price over that period. And the ride hasn't got any smoother in recent times over the last year, with the price 43% lower in that time. Shareholders have had an even rougher run lately, with the share price down 29% in the last 90 days.

Check out our latest analysis for Estoril Sol SGPS

There is no denying that markets are sometimes efficient, but prices do not always reflect 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.

Estoril Sol SGPS saw its share price decline over the three years in which its EPS also dropped, falling to a loss. This was, in part, due to extraordinary items impacting earnings. Due to the loss, it's not easy to use EPS as a reliable guide to the business. But it's safe to say we'd generally expect the share price to be lower as a result!

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

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

What about the Total Shareholder Return (TSR)?

Investors should note that there's a difference between Estoril Sol SGPS' total shareholder return (TSR) and its share price change, which we've covered above. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Dividends have been really beneficial for Estoril Sol SGPS shareholders, and that cash payout explains why its total shareholder loss of 52%, over the last 3 years, isn't as bad as the share price return.

A Different Perspective

Estoril Sol SGPS shareholders are down 43% for the year, but the broader market is up 7.3%. Of course the long term matters more than the short term, and even great stocks will sometimes have a poor year. Shareholders have lost 15% per year over the last three years, so the share price drop has become steeper, over the last year; a potential symptom of as yet unsolved challenges. Although Baron Rothschild famously said to "buy when there's blood in the streets, even if the blood is your own", he also focusses on high quality stocks with solid prospects. It's always interesting to track share price performance over the longer term. But to understand Estoril Sol SGPS better, we need to consider many other factors. For example, we've discovered 2 warning signs for Estoril Sol SGPS that you should be aware of before investing here.

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 PT 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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