YTD shareholder returns and corporate earnings persist lower as KION GROUP (ETR:KGX) stock falls another 4.7% last week

Taking the occasional loss is an integral part of investing in the stock market. Anyone who held KION GROUP S.A. (ETR:KGX) over the past year knows what a loser looks like. Namely, the stock price fell by 58% during this period. Longer-term shareholders have not suffered as much, as the stock has fallen a comparatively less painful 20% in three years. Shareholders have had an even tougher race lately, with the share price falling 18% in the past 90 days. Of course, this stock price move may well have been influenced by the 13% decline in the broader market throughout the period.

Given that the past week has been tough for shareholders, let’s take a look at the fundamentals and see what we can learn.

However, if you’re not interested in researching what drove KGX’s performance, we have a free list of interesting investment ideas to potentially inspire your next investment!

To quote Buffett, “Ships will circumnavigate the globe, but the Flat Earth Society will prosper. There will continue to be wide gaps between price and value in the market…’ An imperfect but reasonable way to gauge how sentiment around a company has changed is to compare earnings per share (EPS) with the stock price.

Unfortunately, KION GROUP had to report a 7.5% decline in EPS over the past year. The 58% share price decline is actually greater than the EPS decline. This suggests that the drop in EPS has made some shareholders more nervous about the company. The P/E ratio of 11.44 also indicates negative market sentiment.

You can see below how the EPS has evolved over time (find out the exact values ​​by clicking on the image).

XTRA: KGX Earnings Per Share Growth September 6, 2022

This free The KION GROUP Earnings, Revenue and Cash Flow Interactive Report is a great place to start if you want to dig deeper into the stock.

A different perspective

We regret to inform you that the shareholding of KION GROUP is down 56% over the year (even including dividends). Unfortunately, this is worse than the general market decline of 23%. However, it could simply be that the stock price was impacted by greater market jitters. It might be worth keeping an eye on the fundamentals, in case there is a good opportunity. Unfortunately, last year’s performance may point to unresolved challenges, given that it was worse than the 8% annualized loss over the past half-decade. We realize that Baron Rothschild said investors should “buy when there’s blood in the streets”, but we caution that investors should first make sure they are buying a high quality company. While it’s worth considering the various impacts that market conditions can have on the stock price, there are other, even more important factors. For example, we found 3 warning signs for KION GROUP (1 is potentially serious!) which you should be aware of before investing here.

But note: KION GROUP may not be the best stock to buy. So take a look at this free list of interesting companies with past earnings growth (and new growth forecasts).

Please note that the market returns quoted in this article reflect the average market-weighted returns of stocks currently trading on DE exchanges.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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