It’s easy to buy index funds these days, and your returns should (mostly) match the market. However, if you choose the right individual stocks, you can earn even more. In other words, Rand and General Berhad (KLSE:L&G)’s share price is up 30% compared to a year ago, significantly better than the market return of around 15% (not including dividends) over the same period. If it can sustain that outperformance over time, investors will do very well. That said, the long-term returns aren’t that impressive, with the stock only up 13% over three years.
So let’s assess the underlying fundamentals over the past year, to see if they have kept pace with shareholder returns.
Check out our latest analysis for Rand and General Berhad.
in his essay Graham & Doddsville SuperInvestors Warren Buffett has said that stock prices do not always rationally reflect the value of a company. By comparing earnings per share (EPS) and share price changes over time, we can learn how investor attitudes to a company have changed over time.
Over the last year, Land & General Berhad grew its earnings per share (EPS) by 149%. It’s safe to say that his 30% increase in stock price hasn’t kept up with his EPS growth. So the market doesn’t seem to be as excited about Rand & General Berhad as it used to be. This may be your chance. The cautiousness is also reflected in the low P/E ratio of 10.81.
The image below shows how EPS has changed over time (unveil the exact values ​​by clicking on the image).
Dive deeper into Land & General Berhad’s key metrics by checking this interactive graph of Land & General Berhad’s earnings, revenue and cash flow.
What will happen to the dividend?
When looking at return on investment, it is important to consider the following differences: Total shareholder return (TSR) and stock price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often much higher than the share price return. Coincidentally, Land & General Berhad’s TSR over the past year was 36%, which is better than the share price return mentioned above. Therefore, the dividend paid by the company is total Shareholder returns.
different perspective
It’s good to see that Land & General Berhad shareholders received a total shareholder return of 36% over the last year. That includes dividends. The stock appears to have performed better of late, as the 1-year TSR is better than his 5-year TSR (the latter at 1.3% per annum). Given the share price momentum remains strong, it might be worth taking a closer look at the stock to make sure you don’t miss out. 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 example, risk.Every company has them and we discovered that 3 Warning Signs for Rand and General Berhad (1 of which is important!) you need to know about.
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Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Malaysian exchanges.
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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, 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.
