If you want to grow your wealth in the stock market, you can buy an index fund. But you can do even better by picking above-average stocks (as part of a diversified portfolio). For example: Kuskapi Company (KLSE:CUSCAPI) shares are up 94% in the past year, clearly outperforming the market return of around 19% (not including dividends). If this excellent performance can be maintained over the long term, investors will stand to make a killing. And shareholders have done well in the long term too, with shares up 41% in the past three years.
It’s also worth looking at the company’s fundamentals here, since it can help determine whether long-term shareholder interests are aligned with the performance of the underlying business.
View our latest analysis for Cuscapi Berhad
Cuscapi Berhad has only made a small profit in the last twelve months, so we’ll look at revenue to assess its business development. Generally, with such low profit figures we would consider such stocks in the same league as loss-making companies. Without revenue growth, it’s hard to believe in a more profitable future.
Over the past 12 months, Cuscapi Berhad’s revenue has grown by 144%, which is impressive growth compared to other loss-making stocks. While a 94% share price increase over 12 months is attractive, some may argue that this does not fully reflect the significant increase in revenue. If so, now may be the time to take a closer look at Cuscapi Berhad. Humans evolved from apes and therefore inherently think linearly. Therefore, when growth is exponential, there may be an opportunity for the enlightened.
The company’s revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
If you are considering buying or selling Cuscapi Berhad shares, check this out. free A detailed balance sheet report.
A different perspective
It’s good to see that Caskapi Berhad has delivered a total shareholder return of 94% to shareholders in the last twelve months. This is better than the 13% annualized return over five years and suggests the company has been performing well recently. Those with an optimistic view might view the recent improvement in TSR as an indication that the business itself is getting stronger over time. While it’s well worth considering the different impacts that market conditions can have on the share price, there are even more important factors. These include: 4 warning signs for Cuscapi Berhad There are a few things you need to know, one of which is important.
of course Kaskapi Berhad may not be the best stock to buySo you might want to take a look at this free A collection of growing stocks.
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 use only unbiased methodologies to provide commentary based on historical data and analyst forecasts, and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks, and does not take into account your objectives, or your financial situation. We seek to provide long-term focused analysis driven by fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
