The three-year loss for Citaglobal Berhad (KLSE:CITAGLB) shareholders likely driven by its shrinking earnings

This week we saw the Citaglobal Berhad (KLSE:CITAGLB) share price climb by 13%. But that doesn't change the fact that the returns over the last three years have been less than pleasing. After all, the share price is down 31% in the last three years, significantly under-performing the market.

The recent uptick of 13% could be a positive sign of things to come, so let's take a look at historical fundamentals.

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While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Citaglobal Berhad saw its EPS decline at a compound rate of 10% per year, over the last three years. This change in EPS is reasonably close to the 12% average annual decrease in the share price. So it seems like sentiment towards the stock hasn't changed all that much over time. Rather, the share price has approximately tracked EPS growth.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

It might be well worthwhile taking a look at our free report on Citaglobal Berhad's earnings, revenue and cash flow.

A Different Perspective

It's good to see that Citaglobal Berhad has rewarded shareholders with a total shareholder return of 3.6% in the last twelve months. Of course, that includes the dividend. That certainly beats the loss of about 1.7% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand Citaglobal Berhad better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Citaglobal Berhad .

We will like Citaglobal Berhad better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying.

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.