While SAM Engineering & Equipment (M) Berhad (KLSE:SAM) shareholders are probably generally happy, the stock hasn’t had particularly good run recently, with the share price falling 22% in the last quarter. But that doesn’t change the fact that the returns over the last year have been very strong. We’re very pleased to report the share price shot up 175% in that time. So we think most shareholders won’t be too upset about the recent fall. The real question is whether the business is trending in the right direction.
On the back of a solid 7-day performance, let’s check what role the company’s fundamentals have played in driving long term shareholder returns.
See our latest analysis for SAM Engineering & Equipment (M) Berhad
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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.
SAM Engineering & Equipment (M) Berhad was able to grow EPS by 56% in the last twelve months. The share price gain of 175% certainly outpaced the EPS growth. This indicates that the market is now more optimistic about the stock.
The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).
Dive deeper into SAM Engineering & Equipment (M) Berhad’s key metrics by checking this interactive graph of SAM Engineering & Equipment (M) Berhad’s earnings, revenue and cash flow.
What About Dividends?
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. It’s fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for SAM Engineering & Equipment (M) Berhad the TSR over the last 1 year was 179%, which is better than the share price return mentioned above. This is largely a result of its dividend payments!
A Different Perspective
We’re pleased to report that SAM Engineering & Equipment (M) Berhad shareholders have received a total shareholder return of 179% over one year. And that does include the dividend. That’s better than the annualised return of 23% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with 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 instance, we’ve identified 2 warning signs for SAM Engineering & Equipment (M) Berhad (1 shouldn’t be ignored) that you should be aware of.
Of course SAM Engineering & Equipment (M) Berhad may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on MY 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.