Y&G Corporation Bhd's (KLSE:Y&G) underlying earnings growth outpaced the respectable return generated for shareholders over the past year

By
Simply Wall St
Published
February 25, 2022
KLSE:Y&G
Source: Shutterstock

It hasn't been the best quarter for Y&G Corporation Bhd. (KLSE:Y&G) shareholders, since the share price has fallen 23% in that time. But looking back over the last year, the returns have actually been rather pleasing! Looking at the full year, the company has easily bested an index fund by gaining 66%.

In light of the stock dropping 12% in the past week, we want to investigate the longer term story, and see if fundamentals have been the driver of the company's positive one-year return.

See our latest analysis for Y&G Corporation Bhd

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. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During the last year Y&G Corporation Bhd saw its earnings per share (EPS) increase strongly. We don't think the exact number is a good guide to the sustainable growth rate, but we do think this sort of increase is impressive. So we'd expect to see the share price higher. We're real advocates of letting inflection points like this guide our research as stock pickers.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

earnings-per-share-growth
KLSE:Y&G Earnings Per Share Growth February 25th 2022

Dive deeper into Y&G Corporation Bhd's key metrics by checking this interactive graph of Y&G Corporation Bhd's earnings, revenue and cash flow.

A Different Perspective

We're pleased to report that Y&G Corporation Bhd shareholders have received a total shareholder return of 66% over one year. There's no doubt those recent returns are much better than the TSR loss of 1.3% per year over five years. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. It's always interesting to track share price performance over the longer term. But to understand Y&G Corporation Bhd better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Y&G Corporation Bhd you should be aware of, and 1 of them is a bit unpleasant.

Of course Y&G Corporation Bhd may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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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