Qatar General Insurance & Reinsurance Company QPSC's (DSM:QGRI) Stock Price Has Reduced 55% In The Past Three Years

If you are building a properly diversified stock portfolio, the chances are some of your picks will perform badly. But the last three years have been particularly tough on longer term Qatar General Insurance & Reinsurance Company QPSC (DSM:QGRI) shareholders. Unfortunately, they have held through a 55% decline in the share price in that time. Unfortunately the share price momentum is still quite negative, with prices down 16% in thirty days. Importantly, this could be a market reaction to the recently released financial results. You can check out the latest numbers in our company report.

See our latest analysis for Qatar General Insurance & Reinsurance Company QPSC

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

During five years of share price growth, Qatar General Insurance & Reinsurance Company QPSC moved from a loss to profitability. We would usually expect to see the share price rise as a result. So given the share price is down it's worth checking some other metrics too.

Arguably the revenue decline of 11% per year has people thinking Qatar General Insurance & Reinsurance Company QPSC is shrinking. And that's not surprising, since it seems unlikely that EPS growth can continue for long in the absence of revenue growth.

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

Take a more thorough look at Qatar General Insurance & Reinsurance Company QPSC's financial health with this free report on its balance sheet.

What about the Total Shareholder Return (TSR)?

We've already covered Qatar General Insurance & Reinsurance Company QPSC's share price action, but we should also mention its total shareholder return (TSR). 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 Qatar General Insurance & Reinsurance Company QPSC shareholders, and that cash payout explains why its total shareholder loss of 51%, over the last 3 years, isn't as bad as the share price return.

A Different Perspective

Qatar General Insurance & Reinsurance Company QPSC shareholders are down 2.5% for the year, but the market itself is up 15%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, longer term shareholders are suffering worse, given the loss of 8% doled out over the last five years. We'd need to see some sustained improvements in the key metrics before we could muster much enthusiasm. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - Qatar General Insurance & Reinsurance Company QPSC has 2 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 QA 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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