Stock Analysis

Stillfront Group (STO:SF) Shareholders Have Enjoyed An Impressive 205% Share Price Gain

OM:SF
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It might be of some concern to shareholders to see the Stillfront Group AB (publ) (STO:SF) share price down 15% in the last month. Despite this, the stock is a strong performer over the last year, no doubt about that. During that period, the share price soared a full 205%. So it is important to view the recent reduction in price through that lense. Only time will tell if there is still too much optimism currently reflected in the share price.

View our latest analysis for Stillfront Group

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. 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.

During the last year Stillfront Group grew its earnings per share (EPS) by 45%. This EPS growth is significantly lower than the 205% increase in the share price. This indicates that the market is now more optimistic about the stock. The fairly generous P/E ratio of 54.98 also points to this optimism.

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

earnings-per-share-growth
OM:SF Earnings Per Share Growth November 24th 2020

We know that Stillfront Group has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling Stillfront Group stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Stillfront Group boasts a total shareholder return of 205% for the last year. Unfortunately the share price is down 0.3% 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 Stillfront Group better, we need to consider many other factors. Even so, be aware that Stillfront Group is showing 3 warning signs in our investment analysis , you should know about...

But note: Stillfront Group may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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