If they invested five years ago, bet-at home.com shareholders (ETR:ACX), are in the red

It’s a joy to report that bet-at–home.com AG (ETR:ACX() has increased 66% over the past quarter. But does that mean it will heal all the injuries sustained over five years of declines and declines? Unlikely. The share price plunged 92% over that period, much like a ship swallowing water. The recent recovery has not given us too much confidence. But the important question is whether the business will justify a higher share cost in the long-term. This is a sad situation for shareholders. This situation is a reminder of the importance diversification and it’s important to remember that life is more than just money.

It is worth assessing whether the company’s economics are in line with these low shareholder returns or if there has been some discrepancy between them. Let’s do this.

Check out our latest analysis for bet-at-home.com

Benjamin Graham said, “The market is a voting device in the short-term. But it’s a weight machine over the long-term.” An easy way to see the relationship between share price and earnings per share (EPS) is to analyze how market sentiment has changed.

Five years ago, bet-at home.com’s share prices and EPS both declined. The former at a rate 25% per annum. The share price has declined faster than the EPS over this period, falling at an average rate of 40% per annum. This indicates that the market is more cautious these days. This is also evident in the low 6.33 P/E ratio.

The image below shows how EPS has changed over the years. Click on the chart to view the exact values.

Although we know bet-at home.com has seen a rise in its bottom line, do we think it will continue to grow its revenue? Find out if analysts believe bet-at–home.com will grow. grow revenue in the future.

What about Dividends

It is important that you consider both the total shareholder return and the share price return for any stock. TSR is a return calculation that includes cash dividends (assuming any dividend received was reinvested), and any discounted capital raises or spin-offs. The TSR is a better indicator of stocks that pay dividends. For bet-at home.com, the TSR for the past 5 years was -89%. This is higher than the share price return. It’s not hard to guess that the divergence is due in large part to the dividend payments.

A Different Perspective

We regret to inform you that bet-at home.com shareholders have fallen 53% over the past year, even including dividends. This is worse than the 9.4% market decline. However, some stocks will undoubtedly be oversold as a result of a falling market. Keep your eyes open for fundamental developments. Unfortunately, shareholders suffered a poor run last year, suffering a loss of 14% per annum over five years. A long-term decline in share prices can be a negative sign. Contrarian investors might still want to look into the stock for signs of potential turnaround. It is always interesting to see how share prices perform over the long-term. We need to take into account many other factors in order to better understand bet-at home.com. For instance, consider the ever-present threat of investment loss. We’ve identified 4 warning signs with bet-at-home.com (at least 2 which can’t be ignored) Understanding these factors should be part your investment process.

You can’t miss this opportunity to visit another company, one that may have superior financials. No cost list of companies that have proven they can grow earnings.

Please note: The market returns quoted in the article represent the market weighted returns of stocks trading on DEX exchanges.

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This article is by Simply Wall St. It is general in nature. Our commentary is based on historical data, analyst forecasts and other unbiased information. We do not intend to provide financial advice. This analysis does not represent a recommendation to purchase or sell any stock and it does not consider your financial goals or financial situation. We strive to deliver long-term focused analysis that is based on fundamental data. Our analysis may not take into account the most recent price-sensitive company announcements and qualitative material. Simply Wall St holds no position in any of the stocks mentioned.

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