Bina Puri Holdings Bhd (KLSE:BPURI) surges 15% this week, taking one-year gains to 150%

It hasn't been the best quarter for Bina Puri Holdings Bhd (KLSE:BPURI) shareholders, since the share price has fallen 12% in that time. But that doesn't detract from the splendid returns of the last year. We're very pleased to report the share price shot up 150% in that time. So we think most shareholders won't be too upset about the recent fall. Only time will tell if there is still too much optimism currently reflected in the share price.

Since the stock has added RM34m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

See our latest analysis for Bina Puri Holdings Bhd

Because Bina Puri Holdings Bhd made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally hope to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last year Bina Puri Holdings Bhd saw its revenue shrink by 45%. We're a little surprised to see the share price pop 150% in the last year. It just goes to show the market doesn't always pay attention to the reported numbers. It's quite likely the revenue fall was already priced in, anyway.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. Dive deeper into the earnings by checking this interactive graph of Bina Puri Holdings Bhd's earnings, revenue and cash flow.

A Different Perspective

It's good to see that Bina Puri Holdings Bhd has rewarded shareholders with a total shareholder return of 150% in the last twelve months. That certainly beats the loss of about 9% per year over the last half decade. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for Bina Puri Holdings Bhd (of which 2 are a bit unpleasant!) you should know about.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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 based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.