Kenanga Investment Bank Berhad (KLSE:KENANGA) Has Rewarded Shareholders With An Exceptional 352% Total Return On Their Investment

While stock picking isn't easy, for those willing to persist and learn, it is possible to buy shares in great companies, and generate wonderful returns. When you buy and hold the right company, the returns can make a huge difference to both you and your family. For example, the Kenanga Investment Bank Berhad (KLSE:KENANGA) share price is up a whopping 316% in the last year, a handsome return in a single year. Also pleasing for shareholders was the 98% gain in the last three months. The company reported its financial results recently; you can catch up on the latest numbers by reading our company report. Looking back further, the stock price is 200% higher than it was three years ago.

See our latest analysis for Kenanga Investment Bank Berhad

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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).

Kenanga Investment Bank Berhad was able to grow EPS by 288% in the last twelve months. We note that the earnings per share growth isn't far from the share price growth (of 316%). So this implies that investor expectations of the company have remained pretty steady. It looks like the share price is responding to the EPS.

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

This free interactive report on Kenanga Investment Bank Berhad's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for Kenanga Investment Bank Berhad the TSR over the last year was 352%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence!

A Different Perspective

It's nice to see that Kenanga Investment Bank Berhad shareholders have gained 352% (in total) over the last year. That's including the dividend. That's better than the annualized TSR of 52% over the last three years. Given the track record of solid returns over varying time frames, it might be worth putting Kenanga Investment Bank Berhad on your watchlist. It's always interesting to track share price performance over the longer term. But to understand Kenanga Investment Bank Berhad better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Kenanga Investment Bank Berhad , and understanding them should be part of your investment process.

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 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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