Investors in Qatar National Bank (Q.P.S.C.) (DSM:QNBK) have unfortunately lost 21% over the last year

These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But in any given year a good portion of stocks will fall short of that. For example, the Qatar National Bank (Q.P.S.C.) (DSM:QNBK) share price fell 24% in the last year, slightly below the market decline of around 19%. However, the longer term returns haven't been so bad, with the stock down 13% in the last three years.

With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.

See our latest analysis for Qatar National Bank (Q.P.S.C.)

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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.

During the unfortunate twelve months during which the Qatar National Bank (Q.P.S.C.) share price fell, it actually saw its earnings per share (EPS) improve by 11%. It's quite possible that growth expectations may have been unreasonable in the past.

It's surprising to see the share price fall so much, despite the improved EPS. So it's easy to justify a look at some other metrics.

Qatar National Bank (Q.P.S.C.) managed to grow revenue over the last year, which is usually a real positive. Since we can't easily explain the share price movement based on these metrics, it might be worth considering how market sentiment has changed towards the stock.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

We know that Qatar National Bank (Q.P.S.C.) has improved its bottom line lately, but what does the future have in store? So it makes a lot of sense to check out what analysts think Qatar National Bank (Q.P.S.C.) will earn in the future (free profit forecasts).

What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for Qatar National Bank (Q.P.S.C.) the TSR over the last 1 year was -21%, which is better than the share price return mentioned above. This is largely a result of its dividend payments!

A Different Perspective

Qatar National Bank (Q.P.S.C.) shareholders are down 21% over twelve months (even including dividends), which isn't far from the market return of -19%. The silver lining is that longer term investors would have made a total return of 0.9% per year over half a decade. If the fundamental data remains strong, and the share price is simply down on sentiment, then this could be an opportunity worth investigating. Keeping this in mind, a solid next step might be to take a look at Qatar National Bank (Q.P.S.C.)'s dividend track record. This free interactive graph is a great place to start.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.