How Much Did Berjaya Sports Toto Berhad's (KLSE:BJTOTO) Shareholders Earn On Their Investment Over The Last Five Years?

For many, the main point of investing is to generate higher returns than the overall market. But in any portfolio, there will be mixed results between individual stocks. So we wouldn't blame long term Berjaya Sports Toto Berhad (KLSE:BJTOTO) shareholders for doubting their decision to hold, with the stock down 31% over a half decade. The silver lining is that the stock is up 4.5% in about a week.

See our latest analysis for Berjaya Sports Toto 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. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During the five years over which the share price declined, Berjaya Sports Toto Berhad's earnings per share (EPS) dropped by 16% each year. The share price decline of 7% per year isn't as bad as the EPS decline. The relatively muted share price reaction might be because the market expects the business to turn around.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

Dive deeper into Berjaya Sports Toto Berhad's key metrics by checking this interactive graph of Berjaya Sports Toto Berhad's earnings, revenue and cash flow.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Berjaya Sports Toto Berhad the TSR over the last 5 years was -10%, which is better than the share price return mentioned above. This is largely a result of its dividend payments!

A Different Perspective

Berjaya Sports Toto Berhad shareholders are down 15% for the year (even including dividends), but the market itself is up 8.5%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 2% per year over five years. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. It's always interesting to track share price performance over the longer term. But to understand Berjaya Sports Toto Berhad better, we need to consider many other factors. For example, we've discovered 2 warning signs for Berjaya Sports Toto Berhad that you should be aware of before investing here.

We will like Berjaya Sports Toto Berhad better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider 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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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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