Is Pan Malaysia Holdings Berhad's (KLSE:PMHLDG) Share Price Gain Of 292% Well Earned?

It might be of some concern to shareholders to see the Pan Malaysia Holdings Berhad (KLSE:PMHLDG) share price down 19% in the last month. But that doesn't detract from the splendid returns of the last year. We're very pleased to report the share price shot up 292% in that time. So some might not be surprised to see the price retrace some. Investors should be wondering whether the business itself has the fundamental value required to continue to drive gains.

Check out our latest analysis for Pan Malaysia Holdings Berhad

Pan Malaysia Holdings 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Pan Malaysia Holdings Berhad actually shrunk its revenue over the last year, with a reduction of 26%. So we would not have expected the share price to rise 292%. It just goes to show the market doesn't always pay attention to the reported numbers. It's quite likely the revenue fall was already priced in, anyway.

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

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

It's good to see that Pan Malaysia Holdings Berhad has rewarded shareholders with a total shareholder return of 292% in the last twelve months. That certainly beats the loss of about 2.5% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand Pan Malaysia Holdings Berhad better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for Pan Malaysia Holdings Berhad you should be aware of, and 1 of them makes us a bit uncomfortable.

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 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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