JHM Consolidation Berhad (KLSE:JHM) earnings growth rate below 15% CAGR provided to shareholders
While JHM Consolidation Berhad (KLSE:JHM) Shareholders are likely generally happy the stock hasn’t had a particularly good run recently, with the stock price dropping 22% in the last quarter. On the positive side, returns have been quite good over the past half-decade. After all, the stock price is up 88%, which is beating the market during this time. Unfortunately, not all shareholders will have held onto it for the long term, so spare a thought for those caught up in the 36% decline over the past twelve months.
Although the stock has fallen 10% this week, it is worth focusing on the long term and seeing if historical stock returns have been driven by underlying fundamentals.
See our latest analysis for JHM Consolidation Berhad
To paraphrase Benjamin Graham: in the short term, the market is a voting machine, but in the long term, it is a weighing machine. One way to look at how market sentiment has changed over time is to look at the interaction between a company’s stock price and its earnings per share (EPS).
In half a decade, JHM Consolidation Berhad has managed to grow its earnings per share by 8.5% per year. This EPS growth is less than the average annual share price increase of 13%. It is therefore fair to assume that the market has a better opinion of the company than five years ago. That’s not necessarily surprising given five years of earnings growth.
The company’s earnings per share (over time) is shown in the image below (click to see exact numbers).
We know that JHM Consolidation Berhad has recently improved its results, but will it increase its income? You could check this free report showing analyst revenue forecast.
What about dividends?
In addition to measuring share price performance, investors should also consider total shareholder return (TSR). While the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they have been reinvested) and the benefit of any capital raising or spin-offs. off updated. It can be said that the TSR gives a more complete picture of the return generated by a stock. We note that for JHM Consolidation Berhad the TSR over the past 5 years was 97%, which is better than the stock price return mentioned above. This is largely the result of its dividend payments!
A different perspective
JHM Consolidation Berhad shareholders are down 35% on the year (even including dividends), but the market itself is up 2.7%. Even good stock prices sometimes drop, but we want to see improvements in a company’s fundamentals before we get too interested. Longer-term investors wouldn’t be so upset, as they would have gained 15%, every year, over five years. It could be that the recent selloff is an opportunity, so it may be worth checking the fundamentals for signs of a long-term growth trend. While it is worth considering the various impacts that market conditions can have on the stock price, there are other, even more important factors. Take for example the ubiquitous specter of investment risk. We have identified 1 warning sign with JHM Consolidation Berhad, and understanding them should be part of your investment process.
We’ll like JHM Consolidation Berhad better if we see big insider buying. In the meantime, watch this free list of growing companies with significant and recent insider buying.
Please note that the market returns quoted in this article reflect the market-weighted average returns of the stocks currently trading on the MY Exchanges.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.