The most you can lose on any stock is 100% of your capital (assuming you don't use leverage). But on the bright side, you can earn well over 100% on really good stocks. For example, prices such as: PMB Technology Berhad (KLSE:PMBTECH)'s share price is up an impressive 299% over the past five years. The stock rose 3.1% last week.
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 PMB Technology Berhad.
While there is no denying that markets are sometimes efficient, prices do not always reflect underlying company performance. 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.
Over five years, PMB Technology Berhad has managed to grow its earnings per share at 26% per year. Therefore, the EPS growth rate is quite close to the annualized share price increase of 32% per year. This shows that investor sentiment toward the company has not changed significantly. In fact, stock prices seem to largely reflect EPS growth.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
We're pleased to report that our CEO is paid more modestly than most CEOs at similarly capitalized companies. While it's always worth keeping an eye on CEO pay, the more important question is whether the company will grow its earnings over the years. Dive deeper into its earnings by checking this interactive graph of PMB Technology Berhad's earnings, revenue and cash flow.
What about total shareholder return (TSR)?
Investors should note that there is a difference between PMB Technology Berhad's total shareholder return (TSR) and share price change discussed 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 increases and spin-offs. His five-year TSR for PMB Technology Berhad was 305%, which exceeded the share price return because it paid dividends.
different perspective
Investors in PMB Technology Berhad have had a rough year, with a total loss of 35% versus a market gain of around 16%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a return of 32% per year over 50 years. If fundamental data continues to point to long-term sustainable growth, the current selloff could be an opportunity worth considering. It's always interesting to track stock performance over the long term. However, to understand PMB Technology Berhad better, you need to consider many other factors. For example, we identified 5 warning signs for PMB Technology Berhad (3 is a bit of a concern) to be aware of.
of course PMB Technology Berhad may not be the best stock to buy.So you might want to see this free A 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 Malaysian exchanges.
Have feedback on this article? Curious about its content? contact Please contact us directly. Alternatively, email our editorial team at Simplywallst.com.
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.
