Stock Analysis

Can-One Berhad (KLSE:CANONE) Shareholders Have Enjoyed A 72% Share Price Gain

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KLSE:CANONE
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These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But you can significantly boost your returns by picking above-average stocks. For example, the Can-One Berhad (KLSE:CANONE) share price is up 72% in the last year, clearly besting the market return of around 36% (not including dividends). That's a solid performance by our standards! Also impressive, the stock is up 31% over three years, making long term shareholders happy, too.

View our latest analysis for Can-One Berhad

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

During the last year Can-One Berhad grew its earnings per share (EPS) by 3.9%. Though we do note extraordinary items affected the bottom line. The share price gain of 72% certainly outpaced the EPS growth. So it's fair to assume the market has a higher opinion of the business than it a year ago.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

earnings-per-share-growth
KLSE:CANONE Earnings Per Share Growth March 23rd 2021

Dive deeper into Can-One Berhad's key metrics by checking this interactive graph of Can-One Berhad's earnings, revenue and cash flow.

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. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Can-One Berhad, it has a TSR of 76% for the last year. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments!

A Different Perspective

We're pleased to report that Can-One Berhad shareholders have received a total shareholder return of 76% over one year. That's including the dividend. That certainly beats the loss of about 1.1% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Can-One Berhad you should know about.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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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