Introducing UWC Berhad (KLSE:UWC), The Stock That Soared 389% In The Last Year

While some are satisfied with an index fund, active investors aim to find truly magnificent investments on the stock market. When you buy and hold the right company, the returns can make a huge difference to both you and your family. In the case of UWC Berhad (KLSE:UWC), the share price is up an incredible 389% in the last year alone. On top of that, the share price is up 87% in about a quarter. UWC Berhad hasn't been listed for long, so it's still not clear if it is a long term winner.

View our latest analysis for UWC Berhad

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

UWC Berhad was able to grow EPS by 52% in the last twelve months. The share price gain of 389% certainly outpaced the EPS growth. So it's fair to assume the market has a higher opinion of the business than it a year ago. The fairly generous P/E ratio of 95.60 also points to this optimism.

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

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized 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 UWC Berhad's earnings, revenue and cash flow.

A Different Perspective

It's nice to see that UWC Berhad shareholders have gained 390% over the last year, including dividends. A substantial portion of that gain has come in the last three months, with the stock up 87% in that time. This suggests the company is continuing to win over new investors. It's always interesting to track share price performance over the longer term. But to understand UWC Berhad better, we need to consider many other factors. Take risks, for example - UWC Berhad has 1 warning sign we think you should be aware of.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on MY exchanges.

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This article by Simply Wall St is general in nature. 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.
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