GDEV Inc. (NASDAQ:GDEV) shareholders are doubtless heartened to see the share price bounce 32% in just one week. But that doesn’t change the fact that the returns over the last year have been less than pleasing. In fact the stock is down 45% in the last year, well below the market return.

The recent uptick of 32% could be a positive sign of things to come, so let’s take a look at historical fundamentals.

Our free stock report includes 3 warning signs investors should be aware of before investing in GDEV. Read for free now.

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. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Unhappily, GDEV had to report a 40% decline in EPS over the last year. We note that the 45% share price drop is very close to the EPS drop. So it seems that the market sentiment has not changed much, despite the weak results. Rather, the share price has approximately tracked EPS growth.

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

It is of course excellent to see how GDEV has grown profits over the years, but the future is more important for shareholders. If you are thinking of buying or selling GDEV stock, you should check out this FREE detailed report on its balance sheet.

It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return 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. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, GDEV’s TSR for the last 1 year was -33%, which exceeds the share price return mentioned earlier. And there’s no prize for guessing that the dividend payments largely explain the divergence!

While GDEV shareholders are down 33% for the year (even including dividends), the market itself is up 7.4%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Notably, the loss over the last year isn’t as bad as the 34% drop in the last three months. This probably signals that the business has recently disappointed shareholders – it will take time to win them back. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Case in point: We’ve spotted 3 warning signs for GDEV you should be aware of, and 2 of them are concerning.