Recent 11% pullback isn't enough to hurt long-term ES Energy Save Holding (NGM:ESGR B) shareholders, they're still up 252% over 1 year

The last three months have been tough on ES Energy Save Holding AB (publ) (NGM:ESGR B) shareholders, who have seen the share price decline a rather worrying 48%. On the other hand, over the last twelve months the stock has delivered rather impressive returns. Indeed, the share price is up an impressive 252% in that time. So we think most shareholders won't be too upset about the recent fall. Only time will tell if there is still too much optimism currently reflected in the share price.

In light of the stock dropping 11% in the past week, we want to investigate the longer term story, and see if fundamentals have been the driver of the company's positive one-year return.

View our latest analysis for ES Energy Save Holding

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 last year ES Energy Save Holding grew its earnings per share, moving from a loss to a profit.

When a company is just on the edge of profitability it can be well worth considering other metrics in order to more precisely gauge growth (and therefore understand share price movements).

However the year on year revenue growth of 220% would help. We do see some companies suppress earnings in order to accelerate revenue growth.

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 ES Energy Save Holding has improved its bottom line over the last three years, but what does the future have in store? Take a more thorough look at ES Energy Save Holding's financial health with this free report on its balance sheet.

A Different Perspective

ES Energy Save Holding boasts a total shareholder return of 252% for the last year. Unfortunately the share price is down 48% over the last quarter. Shorter term share price moves often don't signify much about the business itself. It's always interesting to track share price performance over the longer term. But to understand ES Energy Save Holding better, we need to consider many other factors. For instance, we've identified 4 warning signs for ES Energy Save Holding (1 shouldn't be ignored) that 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 Swedish exchanges.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.