The maximum loss you can make in stock investing (assuming you don’t use leverage) is 100% of your investment. But if you pick a company that’s really thriving, make More than 100%. Long term Hume Cement Industries ( KLSE:HUMEIND ) shareholders will be well aware of this, given that the share price is up 218% in five years, and shareholders will also be pleased to see it rise 28% in the last three months.
Let’s take a look at the underlying fundamentals over the long term and see if they are aligned with shareholder interests.
Check out our latest analysis for Hume Cement Industries 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.
During the five years that the share price rose, Hume Cement Industries Berhad went from being in the red to being in the black, and such a change could be a turning point that justifies a bigger rise in the share price, as we’ve seen here.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
We know that Hume Cement Industries has grown its profits over the last three years, but what does the future hold? If you’re thinking of buying or selling Hume Cement Industries stock, you might want to check out this information. free A detailed balance sheet report.
What about dividends?
It is important to consider the total shareholder return, as well as the price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, as well as dividends, based on the assumption that the dividends are reinvested. As such, for companies that pay large dividends, the TSR is often a lot higher than the share price return. In the case of Hume Cement Industries Berhad, we can see that the TSR for the last 5 years was 227%, which is higher than the share price return shown above. The dividends paid by the company have thus boosted the share price return. total Shareholder returns.
A different perspective
It’s good to see that Hume Cement Industries Berhad shareholders have received a total shareholder return of 110% over the past year, including dividends. This is higher than the five-year annualized return of 27%, suggesting 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 performing better over time. It’s always interesting to track share price movements over the long term. However, to understand Hume Cement Industries Berhad better, there are many other factors to consider. Let’s consider risks, for example. Hume Cement Industries Berhad is Two warning signs I think you should know.
We’ll likely like Hume Cement Industries better if we see some significant insider buying, so let’s check this out while we wait. free A list of undervalued stocks (mostly small caps) that have seen significant insider buying recently.
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
