Advertisement
Australia markets close in 5 hours 11 minutes
  • ALL ORDS

    7,825.80
    -73.10 (-0.93%)
     
  • ASX 200

    7,569.10
    -73.00 (-0.96%)
     
  • AUD/USD

    0.6409
    -0.0016 (-0.26%)
     
  • OIL

    82.60
    -0.13 (-0.16%)
     
  • GOLD

    2,392.80
    -5.20 (-0.22%)
     
  • Bitcoin AUD

    97,943.42
    +1,946.09 (+2.03%)
     
  • CMC Crypto 200

    1,305.08
    +419.54 (+47.04%)
     
  • AUD/EUR

    0.6022
    -0.0009 (-0.15%)
     
  • AUD/NZD

    1.0868
    -0.0007 (-0.07%)
     
  • NZX 50

    11,812.17
    -23.87 (-0.20%)
     
  • NASDAQ

    17,394.31
    -99.31 (-0.57%)
     
  • FTSE

    7,877.05
    +29.06 (+0.37%)
     
  • Dow Jones

    37,775.38
    +22.07 (+0.06%)
     
  • DAX

    17,837.40
    +67.38 (+0.38%)
     
  • Hang Seng

    16,385.87
    +134.03 (+0.82%)
     
  • NIKKEI 225

    37,322.08
    -757.62 (-1.99%)
     

CURO Group Holdings (NYSE:CURO) investors are sitting on a loss of 78% if they invested a year ago

It's not a secret that every investor will make bad investments, from time to time. But it should be a priority to avoid stomach churning catastrophes, wherever possible. We wouldn't blame CURO Group Holdings Corp. (NYSE:CURO) shareholders if they were still in shock after the stock dropped like a lead balloon, down 79% in just one year. While some investors are willing to stomach this sort of loss, they are usually professionals who spread their bets thinly. We note that it has not been easy for shareholders over three years, either; the share price is down 73% in that time. Shareholders have had an even rougher run lately, with the share price down 40% in the last 90 days.

So let's have a look and see if the longer term performance of the company has been in line with the underlying business' progress.

View our latest analysis for CURO Group Holdings

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. 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).

ADVERTISEMENT

CURO Group Holdings fell to a loss making position during the year. While this may prove temporary, we'd consider it a negative, so it doesn't surprise us that the stock price is down. We hope for shareholders' sake that the company becomes profitable again soon.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

earnings-per-share-growth
earnings-per-share-growth

It might be well worthwhile taking a look at our free report on CURO Group Holdings' earnings, revenue and cash flow.

A Different Perspective

We regret to report that CURO Group Holdings shareholders are down 78% for the year (even including dividends). Unfortunately, that's worse than the broader market decline of 19%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 12% per year over five years. 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. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that CURO Group Holdings is showing 3 warning signs in our investment analysis , and 1 of those shouldn't be ignored...

But note: CURO Group Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here