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Taking the occasional loss comes part and parcel with investing on the stock market. Unfortunately, shareholders of Enea AB (publ) (STO:ENEA) have suffered share price declines over the last year. In that relatively short period, the share price has plunged 63%. We note that it has not been easy for shareholders over three years, either; the share price is down 41% in that time. The falls have accelerated recently, with the share price down 28% in the last three months.

With the stock having lost 13% in the past week, it's worth taking a look at business performance and seeing if there's any red flags.

Though if you're not interested in researching what drove ENEA's performance, we have a free list of interesting investing ideas to potentially inspire your next investment!

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Unhappily, Enea had to report a 12% decline in EPS over the last year. This reduction in EPS is not as bad as the 63% share price fall. Unsurprisingly, given the lack of EPS growth, the market seems to be more cautious about the stock. The P/E ratio of 11.96 also points to the negative market sentiment.

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

Dive deeper into Enea's key metrics by checking this interactive graph of Enea's earnings, revenue and cash flow.

While the broader market lost about 25% in the twelve months, Enea shareholders did even worse, losing 63%. 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. Longer term investors wouldn't be so upset, since they would have made 1.3%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. Most investors take the time to check the data on insider transactions. You can click here to see if insiders have been buying or selling.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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

Find out whether Enea is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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The one-year shareholder returns and company earnings persist lower as Enea (STO:ENEA) stock falls a further 13% in past week - Simply Wall St