Berjaya Land Berhad (KLSE:BJLAND) shareholder returns have been favorable, earning 92% in 5 years

When we invest, we're generally looking for stocks that outperform the market average. And while active stock picking involves risks (and requires diversification) it can also provide excess returns. For example, long term Berjaya Land Berhad (KLSE:BJLAND) shareholders have enjoyed a 92% share price rise over the last half decade, well in excess of the market return of around 9.5% (not including dividends). On the other hand, the more recent gains haven't been so impressive, with shareholders gaining just 30%.

Since the stock has added RM171m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

See our latest analysis for Berjaya Land Berhad

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Berjaya Land Berhad became profitable within the last five years. However, it made a loss in the last twelve months, suggesting profit may be an unreliable metric at this stage. So we might find other metrics can better explain the share price movements.

On the other hand, Berjaya Land Berhad's revenue is growing nicely, at a compound rate of 10% over the last five years. In that case, the company may be sacrificing current earnings per share to drive growth.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

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

A Different Perspective

It's nice to see that Berjaya Land Berhad shareholders have received a total shareholder return of 30% over the last year. That's better than the annualised return of 14% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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

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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.