The most you can lose on any stock is 100% of your capital (assuming you don't use leverage).But in contrast, you can get a lot more more If the company's performance is good, it will be 100% or more. for example, Suria Capital Holdings Berhad (KLSE:SURIA) stock is up 112% from three years ago. Most people will be satisfied with that. It's also good to see that the stock price is up 22% quarter-over-quarter.
With that in mind, it's worth checking whether a company's underlying fundamentals are driving its long-term performance, or if there are any discrepancies.
Check out our latest analysis for Suria Capital Holdings Berhad.
Although the efficient markets hypothesis continues to be taught by some, it has been proven that markets are dynamic systems that overreact and that investors are not always rational. 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.
During the three-year period of share price appreciation, Suria Capital Holdings Berhad achieved compound profit growth of 2.0% per year. This EPS growth rate is lower than the average annual increase in stock price of 28%. This suggests the market is feeling more optimistic about the stock after its progress over the past few years. This isn't necessarily surprising, given its track record of profit growth over the past three years.
The image below shows how EPS has changed over time (unveil the exact values by clicking on the image).
Before buying or selling a stock, we always recommend taking a closer look at its historical growth trends, available here.
What will happen to the dividend?
As well as measuring share price return, investors should also consider total shareholder return (TSR). 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. We note that Suria Capital Holdings Berhad's TSR over the last three years was his 135%, which is better than the share price return mentioned above. Therefore, the dividend paid by the company is total Shareholder returns.
different perspective
It's good to see that Suria Capital Holdings Berhad shareholders received a total shareholder return of 97% over the last year. Of course, this includes dividends. The stock appears to be performing better of late, as the 1-year TSR is better than his 5-year TSR (the latter at 15% per annum). Optimists might think that the recent improvement in TSR indicates that the business itself is improving over time. 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. For example, we discovered that 2 warning signs for Suria Capital Holdings Berhad What you need to know before investing here.
However, please note: Suria Capital Holdings Berhad may not be the best stock to buy.So take a look at this free A list of interesting companies that have grown their earnings in the past (and are predicted to grow in the future).
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 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.
