Stock Analysis

Even after rising 14% this past week, Berjaya Assets Berhad (KLSE:BJASSET) shareholders are still down 18% over the past three years

KLSE:BJASSET
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Berjaya Assets Berhad (KLSE:BJASSET) shareholders should be happy to see the share price up 22% in the last month. But that doesn't help the fact that the three year return is less impressive. In fact, the share price is down 18% in the last three years, falling well short of the market return.

While the last three years has been tough for Berjaya Assets Berhad shareholders, this past week has shown signs of promise. So let's look at the longer term fundamentals and see if they've been the driver of the negative returns.

Check out our latest analysis for Berjaya Assets Berhad

Given that Berjaya Assets Berhad didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. When a company doesn't make profits, we'd generally expect to see good 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 grow by 6.5% per year, compound. That's not a very high growth rate considering it doesn't make profits. Indeed, the stock dropped 6% over the last three years. Shareholders will probably be hoping growth picks up soon. But the real upside for shareholders will be if the company can start generating profits.

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

earnings-and-revenue-growth
KLSE:BJASSET Earnings and Revenue Growth January 5th 2024

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

We're pleased to report that Berjaya Assets Berhad shareholders have received a total shareholder return of 12% over one year. That gain is better than the annual TSR over five years, which is 1.2%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. You could get a better understanding of Berjaya Assets Berhad's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

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 Malaysian exchanges.

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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.