Introducing Tricorn Group (LON:TCN), The Stock That Dropped 44% In The Last Year
Passive investing in an index fund is a good way to ensure your own returns roughly match the overall market. While individual stocks can be big winners, plenty more fail to generate satisfactory returns. Unfortunately the Tricorn Group plc (LON:TCN) share price slid 44% over twelve months. That's disappointing when you consider the market returned 12%. Longer term shareholders haven't suffered as badly, since the stock is down a comparatively less painful 23% in three years. Shareholders have had an even rougher run lately, with the share price down 12% in the last 90 days.
See our latest analysis for Tricorn Group
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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.
Unfortunately Tricorn Group reported an EPS drop of 31% for the last year. This reduction in EPS is not as bad as the 44% share price fall. Unsurprisingly, given the lack of EPS growth, the market seems to be more cautious about the stock. The less favorable sentiment is reflected in its current P/E ratio of 6.05.
The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).
We know that Tricorn Group has improved its bottom line over the last three years, but what does the future have in store? It might be well worthwhile taking a look at our free report on how its financial position has changed over time.
A Different Perspective
Investors in Tricorn Group had a tough year, with a total loss of 43% (including dividends) , against a market gain of about 12%. 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. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 8.1% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand Tricorn Group better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for Tricorn Group you should be aware of, and 2 of them are a bit unpleasant.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on GB exchanges.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
