Did Business Growth Power Awanbiru Technology Berhad's (KLSE:AWANTEC) Share Price Gain of 139%?

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But if you pick the right stock, you can make a lot more than 100%. For example, the Awanbiru Technology Berhad (KLSE:AWANTEC) share price had more than doubled in just one year - up 139%. Shareholders are also celebrating an even better 143% rise, over the last three months. In contrast, the longer term returns are negative, since the share price is 46% lower than it was three years ago.

View our latest analysis for Awanbiru Technology Berhad

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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.

During the last year Awanbiru Technology Berhad saw its earnings per share (EPS) drop below zero. While some may see this as temporary, we're a skeptical bunch, and so we're a little surprised to see the share price go up. It may be that the company has done well on other metrics.

Unfortunately Awanbiru Technology Berhad's fell 35% over twelve months. So the fundamental metrics don't provide an obvious explanation for the share price gain.

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

If you are thinking of buying or selling Awanbiru Technology Berhad stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's good to see that Awanbiru Technology Berhad has rewarded shareholders with a total shareholder return of 139% in the last twelve months. Notably the five-year annualised TSR loss of 10% 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. It's always interesting to track share price performance over the longer term. But to understand Awanbiru Technology Berhad better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Awanbiru Technology Berhad (at least 2 which don't sit too well with us) , and understanding them should be part of your investment process.

Of course Awanbiru Technology Berhad 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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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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