Marathon Nextgen Realty Limited (NSE:MARATHON) shareholders should be happy to see the share price up 13% in the last month. But that is minimal compensation for the share price under-performance over the last year. The cold reality is that the stock has dropped 37% in one year, under-performing the market.

Check out our latest analysis for Marathon Nextgen Realty

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Unfortunately Marathon Nextgen Realty reported an EPS drop of 18% for the last year. This reduction in EPS is not as bad as the 37% share price fall. This suggests the EPS fall has made some shareholders are more nervous about the business.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

It might be well worthwhile taking a look at our free report on Marathon Nextgen Realty's earnings, revenue and cash flow.

A Different Perspective

Marathon Nextgen Realty shareholders are down 36% for the year (even including dividends) , but the broader market is up 6.1%. Of course the long term matters more than the short term, and even great stocks will sometimes have a poor year. Shareholders have lost 6.3% per year over the last three years, so the share price drop has become steeper, over the last year; a potential symptom of as yet unsolved challenges. We would be wary of buying into a company with unsolved problems, although some investors will buy into struggling stocks if they believe the price is sufficiently attractive. Is Marathon Nextgen Realty cheap compared to other companies? These 3 valuation measures might help you decide.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.