Simply Wall St. Earnings growth outpaced the favorable 11% CAGR delivered to JKG Land Berhad (KLSE:JKGLAND) shareholders over the last five years Read full article [email protected] (Simply Wall St) December 29, 2023 at 1:30 a.m. · 3 min read
When we invest, we’re generally looking for stocks that outperform the market average. And in our experience, buying the right stocks can give your wealth a significant boost. For example, the JKG Land Berhad (KLSE:JKGLAND) share price is up 64% in the last 5 years, clearly besting the market decline of around 3.5% (ignoring dividends). On the other hand, the more recent gains haven’t been so impressive, with shareholders gaining just 15%.
Since it’s been a strong week for JKG Land Berhad shareholders, let’s have a look at trend of the longer term fundamentals.
View our latest analysis for JKG Land Berhad
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 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.
Over half a decade, JKG Land Berhad managed to grow its earnings per share at 74% a year. The EPS growth is more impressive than the yearly share price gain of 10% over the same period. So it seems the market isn’t so enthusiastic about the stock these days. This cautious sentiment is reflected in its (fairly low) P/E ratio of 11.24.
The company’s earnings per share (over time) is depicted in the image below (click to see the exact numbers).
KLSE:JKGLAND Earnings Per Share Growth December 28th 2023 It might be well worthwhile taking a look at our free report on JKG Land Berhad’s earnings, revenue and cash flow.
What About The Total Shareholder Return (TSR)? Investors should note that there’s a difference between JKG Land Berhad’s total shareholder return (TSR) and its share price change, which we’ve covered above. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. JKG Land Berhad’s TSR of 66% for the 5 years exceeded its share price return, because it has paid dividends.
Story continues A Different Perspective It’s good to see that JKG Land Berhad has rewarded shareholders with a total shareholder return of 15% in the last twelve months. Since the one-year TSR is better than the five-year TSR (the latter coming in at 11% per year), it would seem that the stock’s performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. 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. Even so, be aware that JKG Land Berhad is showing 2 warning signs in our investment analysis , you should know about…
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 Malaysian exchanges.
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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.
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