Market cap

Even though SP Setia Berhad (KLSE: SPSETIA) lost a market cap of RM366 million in the past 7 days, shareholders are still up 67% year on year

SP Setia Berhad (KLSE: SPSETIA) Shareholders saw the share price drop 17% during the month. But that doesn’t change the fact that the returns over the past year have been pleasant. During this time, we have seen the stock easily outperform the market, gaining 67%.

While the stock has fallen 6.5% this week, it’s worth focusing on the long term and seeing if historical stock returns have been driven by underlying fundamentals.

See our latest review for SP Setia 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).

Over the past year, SP Setia Berhad has increased its earnings per share from a loss to a profit.

When a company has just transitioned to profitability, growing earnings per share is not always the best way to look at the evolution of the share price.

However, the 32% year-over-year revenue growth would help. Many companies are going through a phase where they have to forgo certain profits to stimulate business development, and sometimes it is for the best.

Below you can see how earnings and income have evolved over time (find out the exact values ​​by clicking on the image).

KLSE: SPSETIA Profits and Revenue Growth November 28, 2021

SP Setia Berhad is a well-known stock, with plenty of analyst coverage, suggesting some visibility into future growth. So it makes sense to check what analysts think SP Setia Berhad will earn in the future (free analyst consensus estimates)

A different perspective

It is nice to see that the shareholders of SP Setia Berhad have received a total shareholder return of 67% over the past year. This certainly beats the loss of around 9% per year over the past five years. It makes us a little suspicious, but the company may have changed course. I find it very interesting to look at the long-term share price as an indicator of company performance. But to really understand better, we have to take other information into account as well. For example, we discovered 1 warning sign for SP Setia Berhad which you should know before investing here.

Sure SP Setia Berhad may not be the best stock to buy. So you might want to see this free collection of growth stocks.

Please note that the market returns quoted in this article reflect the average market weighted returns of stocks currently trading on MY exchanges.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.

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