Investors Who Bought DPS Resources Berhad (KLSE:DPS) Shares Five Years Ago Are Now Down 19%

For many, the main point of investing is to generate higher returns than the overall market. But every investor is virtually certain to have both over-performing and under-performing stocks. So we wouldn't blame long term DPS Resources Berhad (KLSE:DPS) shareholders for doubting their decision to hold, with the stock down 19% over a half decade. On the other hand the share price has bounced 8.3% over the last week.

View 2 warning signs we detected for DPS Resources Berhad

We don't think that DPS Resources Berhad's modest trailing twelve month profit has the market's full attention at the moment. We think revenue is probably a better guide. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. It would be hard to believe in a more profitable future without growing revenues.

Over half a decade DPS Resources Berhad reduced its trailing twelve month revenue by 11% for each year. That puts it in an unattractive cohort, to put it mildly. On the face of it we'd posit the share price fall of 4.1% compound, over five years is well justified by the fundamental deterioration. This loss means the stock shareholders are probably pretty annoyed. Risk averse investors probably wouldn't like this one much.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

It's nice to see that DPS Resources Berhad shareholders have received a total shareholder return of 8.3% over the last year. Notably the five-year annualised TSR loss of 4.1% per year compares very unfavourably with the recent share price performance. 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. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

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