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It's not possible to invest over long periods without making some bad investments. But really bad investments should be rare. So take a moment to sympathize with the long term shareholders of Beardsell Limited (NSE:BEARDSELL), who have seen the share price tank a massive 89% over a three year period. That'd be enough to cause even the strongest minds some disquiet. And over the last year the share price fell 57%, so we doubt many shareholders are delighted. Shareholders have had an even rougher run lately, with the share price down 25% in the last 90 days.
While a drop like that is definitely a body blow, money isn't as important as health and happiness.
See our latest analysis for Beardsell
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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).
Over the three years that the share price declined, Beardsell's earnings per share (EPS) dropped significantly, falling to a loss. Since the company has fallen to a loss making position, it's hard to compare the change in EPS with the share price change. But it's safe to say we'd generally expect the share price to be lower as a result!
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
Dive deeper into Beardsell's key metrics by checking this interactive graph of Beardsell's earnings, revenue and cash flow.
What about the Total Shareholder Return (TSR)?
We've already covered Beardsell'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. Its history of dividend payouts mean that Beardsell's TSR, which was a 88% drop over the last 3 years, was not as bad as the share price return.
A Different Perspective
Beardsell shareholders are down 56% for the year (even including dividends) , but the market itself is up 8.4%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 1.5% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. You could get a better understanding of Beardsell's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.