Stock Analysis

Berjaya Assets Berhad's(KLSE:BJASSET) Share Price Is Down 33% Over The Past Three Years.

KLSE:BJASSET
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As an investor its worth striving to ensure your overall portfolio beats the market average. But the risk of stock picking is that you will likely buy under-performing companies. We regret to report that long term Berjaya Assets Berhad (KLSE:BJASSET) shareholders have had that experience, with the share price dropping 33% in three years, versus a market decline of about 0.08%. It's up 1.7% in the last seven days.

Check out our latest analysis for Berjaya Assets Berhad

Berjaya Assets Berhad wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last three years Berjaya Assets Berhad saw its revenue shrink by 9.3% per year. That's not what investors generally want to see. The stock has disappointed holders over the last three years, falling 10%, annualized. That makes sense given the lack of either profits or revenue growth. However, in this kind of situation you can sometimes find opportunity, where sentiment is negative but the company is actually making good progress.

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

earnings-and-revenue-growth
KLSE:BJASSET Earnings and Revenue Growth November 26th 2020

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

Berjaya Assets Berhad shareholders gained a total return of 3.4% during the year. But that return falls short of the market. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 4% endured over half a decade. It could well be that the business is stabilizing. It's always interesting to track share price performance over the longer term. But to understand Berjaya Assets Berhad better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Berjaya Assets Berhad you should be aware of.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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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Valuation is complex, but we're here to simplify it.

Discover if Berjaya Assets Berhad might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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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