Ta Ann Holdings Berhad (KLSE:TAANN) total investor return has grown faster than earnings growth over the past three years

The worst outcome after buying shares in a company (assuming there is no leverage) would be if you lost all the money you invested. But if you buy shares in a very large company, you can After than double your money. For example, the Ta Ann Holdings Berhad (KLSE: TAANN) the stock price has climbed 145% over the past three years. This kind of back is as solid as granite. On top of that, the stock price is up 34% in about a quarter. This could be linked to recent financial results, released recently – you can keep up to date with the latest data by reading our corporate report.

Although Ta Ann Holdings Berhad lost RM233 million of its market capitalization this week, let’s take a look at its longer-term fundamental trends and see if it has generated any returns.

Check out our latest analysis for Ta Ann Holdings Berhad

It is undeniable that markets are sometimes efficient, but prices do not always reflect the underlying performance of companies. An imperfect but reasonable way to gauge changing sentiment around a company is to compare earnings per share (EPS) with the stock price.

Ta Ann Holdings Berhad was able to increase its EPS by 62% annually over three years, driving the stock price higher. The average annual share price increase of 35% is actually less than EPS growth. So it seems investors have become more cautious about the company over time. We think the low P/E ratio of 7.64 also reflects the negative sentiment around the stock.

You can see below how the EPS has evolved over time (find out the exact values ​​by clicking on the image).

KLSE: TAANN Earnings per share growth May 13, 2022

It is of course great to see how Ta Ann Holdings Berhad has increased its profits over the years, but the future is more important to shareholders. If you are considering buying or selling shares of Ta Ann Holdings Berhad, you should check out this FREE detailed report on its balance sheet.

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’s fair to say that the TSR gives a more complete picture of stocks that pay a dividend. We note that for Ta Ann Holdings Berhad the TSR over the past 3 years was 192%, which is better than the stock price return mentioned above. And there’s no price guessing that dividend payouts largely explain the divergence!

A different perspective

It’s nice to see that Ta Ann Holdings Berhad shareholders have received a total shareholder return of 104% over the past year. And that includes the dividend. As the one-year TSR is better than the five-year TSR (the latter standing at 15% per year), it seems that the stock’s performance has improved lately. Given that the stock price momentum remains strong, it might be worth taking a closer look at the stock lest you miss an opportunity. While it’s worth considering the various impacts that market conditions can have on the stock price, there are other, even more important factors. Like risks, for example. Every business has them, and we’ve spotted 3 warning signs for Ta Ann Holdings Berhad (1 of which makes us a little uncomfortable!) that you should know.

We’ll like Ta Ann Holdings 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.

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.