The truth is that if you invest for long enough, you’re going to end up with some losing stocks. But the long term shareholders of Tourism Finance Corporation of India Limited (NSE:TFCILTD) have had an unfortunate run in the last three years. Regrettably, they have had to cope with a 59% drop in the share price over that period. And more recent buyers are having a tough time too, with a drop of 40% in the last year. Furthermore, it’s down 22% in about a quarter. That’s not much fun for holders. But this could be related to the weak market, which is down 10% in the same period.
After losing 13% this past week, it’s worth investigating the company’s fundamentals to see what we can infer from past performance.
Check out our latest analysis for Tourism Finance Corporation of India
There is no denying that markets are sometimes efficient, but prices do not always reflect 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).
Tourism Finance Corporation of India saw its EPS decline at a compound rate of 4.0% per year, over the last three years. This reduction in EPS is slower than the 26% annual reduction in the share price. So it’s likely that the EPS decline has disappointed the market, leaving investors hesitant to buy. The less favorable sentiment is reflected in its current P/E ratio of 4.90.
The company’s earnings per share (over time) is depicted in the image below (click to see the exact numbers).
Dive deeper into Tourism Finance Corporation of India’s key metrics by checking this interactive graph of Tourism Finance Corporation of India’s earnings, revenue and cash flow.
What About Dividends?
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of…