While Dayang Enterprise Holdings Bhd (KLSE:DAYANG) shareholders are probably generally happy, the stock hasn’t had particularly good run recently, with the share price falling 21% in the last quarter. Looking further back, the stock has generated good profits over five years. It has returned a market beating 39% in that time. Unfortunately not all shareholders will have held it for the long term, so spare a thought for those caught in the 31% decline over the last twelve months.
Since the long term performance has been good but there’s been a recent pullback of 11%, let’s check if the fundamentals match the share price.
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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 way to examine how market sentiment has changed over time is to look at the interaction between a company’s share price and its earnings per share (EPS).
During the five years of share price growth, Dayang Enterprise Holdings Bhd moved from a loss to profitability. That would generally be considered a positive, so we’d hope to see the share price to rise.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
We know that Dayang Enterprise Holdings Bhd has improved its bottom line over the last three years, but what does the future have in store? It might be well worthwhile taking a look at our free report on how its financial position has changed over time.
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). 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. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Dayang Enterprise Holdings Bhd, it has a TSR of 63% for the last 5 years. That exceeds its share price return that we previously mentioned. And there’s no prize for guessing that the dividend payments largely explain the divergence!
Investors in Dayang Enterprise Holdings Bhd had a tough year, with a total loss of 25% (including dividends), against a market gain of about 0.3%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn’t be so upset, since they would have made 10%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It’s always interesting to track share price performance over the longer term. But to understand Dayang Enterprise Holdings Bhd better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we’ve spotted with Dayang Enterprise Holdings Bhd .