Commercial Vehicle Group (NASDAQ:CVGI) adds US$28m to market cap in the past 7 days, though investors from a year ago are still down 49%

This week we saw the Commercial Vehicle Group, Inc. (NASDAQ:CVGI) share price climb by 19%. But that is minimal compensation for the share price under-performance over the last year. In fact the stock is down 49% in the last year, well below the market return.

While the stock has risen 19% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.

View our latest analysis for Commercial Vehicle Group

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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 the last year Commercial Vehicle Group grew its earnings per share, moving from a loss to a profit.

Earnings per share growth rates aren't particularly useful for comparing with the share price, when a company has moved from loss to profit. So it makes sense to check out some other factors.

On the other hand, we're certainly perturbed by the 3.6% decline in Commercial Vehicle Group's revenue. Many investors see falling revenue as a likely precursor to lower earnings, so this could well explain the weak share price.

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 Commercial Vehicle Group has improved its bottom line lately, but what does the future have in store? If you are thinking of buying or selling Commercial Vehicle Group stock, you should check out this free report showing analyst profit forecasts.

A Different Perspective

While the broader market gained around 25% in the last year, Commercial Vehicle Group shareholders lost 49%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 6% per year over five years. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. 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 - Commercial Vehicle Group has 3 warning signs (and 1 which is a bit unpleasant) we think you should know about.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation).

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

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