As an investor, it's worth striving for your overall portfolio to outperform the market average. However, if you try your hand at stock picking, the risk return will be lower than the market.I regret that it has been a long time since I last reported. camden national corporation (NASDAQ:CAC) shareholders have had that experience, with the share price down 31% over three years, while the market return was around 24%. And with the share price down 24% in the last year, we doubt many shareholders are happy. Shareholders' management has become even more difficult recently, and the stock price has fallen 13% in the past 90 days.
Next, let's look at the company's fundamentals to see if long-term shareholder returns are in line with the performance of the underlying business.
Check out our latest analysis for Camden National.
Markets are powerful pricing mechanisms, but stock prices reflect not only underlying business performance but also investor sentiment. One imperfect but simple way to consider how the market perception of a company has changed is to compare the change in the earnings per share (EPS) with the share price movement.
During the three years the share price was down, Camden National's earnings per share (EPS) declined by 9.1% each year. The 11% share price decline is actually more steep than the EPS slippage. Therefore, it is likely that the decline in EPS has disappointed the market and investors are hesitant to buy. This increased caution is also reflected in its fairly low P/E ratio of 10.53.
You can see below how EPS has changed over time (unveil the exact values by clicking on the image).
It might be well worth taking a look at ours free Camden National earnings, revenue and cash flow report.
What will happen to the dividend?
When looking at return on investment, it is important to consider the following differences: Total shareholder return (TSR) and stock price return. Whereas the price/earnings ratio only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return delivered by a stock. For Camden National, the TSR for the last 3 years is -22%. This exceeds the stock return mentioned earlier. This is primarily due to dividend payments.
different perspective
Camden National shareholders are down 20% for the year (even including dividends), while the market itself is up 26%. Even blue-chip stocks can see their share prices drop from time to time, and we like to see improvement in a company's fundamental metrics before we get too interested. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the 2% annualized loss over the past five years. Generally speaking, long-term stock price weakness can be a bad sign, but contrarian investors may want to research the stock in hopes of a turnaround. Before you invest more time in Camden National, it might be wise to click here to see if insiders have been buying or selling shares.
If you're like me, you will. do not have I want to miss this free A list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.
Have feedback on this article? Curious about its content? contact Please contact us directly. Alternatively, email our 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 using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
