For shareholders, CSC Steel Holdings (KLSE:CSCSTEL) shares have fallen 10% in the last month. On the bright side, shares have risen over the past five years. However, we’re not too impressed as the share price is only up 28%, below the market return of 29%.
It’s also worth looking at the company’s fundamentals here, because it can help determine whether long-term shareholder interests are aligned with the performance of the underlying business.
Check out our latest analysis for CSC Steel Holdings Berhad
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems and investors are not always rational.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.
CSC Steel Holdings Berhad has grown its earnings per share at 22% per year over five years. This EPS growth rate is more impressive than the 5% annual share price increase over the same period. We can therefore conclude that the market at large is becoming more cautious towards this stock. This cautious sentiment is reflected in the (fairly low) P/E ratio of 11.65.
The chart below depicts how EPS has changed over time (unveil the exact values ​​by clicking on the image).
We know that CSC Steel Holdings Berhad has improved its profits recently, but will revenue grow? Find out. free A report showing analyst earnings forecasts.
What about dividends?
When looking at investment returns, it’s important to consider the following differences: Total shareholder return (TSR) and Price Earnings RatioThe TSR is a return calculation that takes into account the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. It can be said that the TSR gives a more comprehensive picture of the return generated by a stock. In fact, CSC Steel Holdings Berhad’s TSR for the last 5 years was 70%, which exceeds the share price return mentioned above. And it’s not difficult to deduce that dividend payments mainly explain this divergence.
A different perspective
CSC Steel Holdings Berhad has delivered a TSR of 24% for the year (including dividends), which is pretty close to the broader market return. Most people will be happy with the gains and it’s also positive that this year’s return is higher than the five-year average return of 11%. Management’s foresight means growth is likely to continue into the future, even if the share price stagnates. It’s always interesting to track share price performance over the long term, but to understand CSC Steel Holdings Berhad better, there are many other factors to consider. Still, CSC Steel Holdings Berhad is a strong contender for the top spot. One warning sign in investment analysis things you should know…
For those who love to find A winning investment this free This list of undervalued companies with recent insider buying could be just the thing.
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 about this article? Concerns about the content? contact Please contact us directly. Or email editorial-team (at) simplywallst.com.
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.
Have feedback about this article? Concerns about the content? Contact us directly. Or email us at editorial-team@simplywallst.com
