Recent 13% pullback isn't enough to hurt long-term Supermax Corporation Berhad (KLSE:SUPERMX) shareholders, they're still up 57% over 5 years

It's been a soft week for Supermax Corporation Berhad (KLSE:SUPERMX) shares, which are down 13%. But at least the stock is up over the last five years. In that time, it is up 26%, which isn't bad, but is below the market return of 30%.

Since the long term performance has been good but there's been a recent pullback of 13%, let's check if the fundamentals match the share price.

View our latest analysis for Supermax Corporation Berhad

Supermax Corporation Berhad isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last 5 years Supermax Corporation Berhad saw its revenue shrink by 24% per year. Even though revenue hasn't increased, the stock actually gained 5%, per year, during the same period. To us that suggests that there probably isn't a lot of correlation between the past revenue performance and the share price, but a closer look at analyst forecasts and the bottom line may well explain a lot.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. So it makes a lot of sense to check out what analysts think Supermax Corporation Berhad will earn in the future (free profit forecasts).

What About The Total Shareholder Return (TSR)?

We've already covered Supermax Corporation Berhad's share price action, but we should also mention its total shareholder return (TSR). Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Supermax Corporation Berhad's TSR of 57% for the 5 years exceeded its share price return, because it has paid dividends.

A Different Perspective

It's nice to see that Supermax Corporation Berhad shareholders have received a total shareholder return of 13% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 9% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand Supermax Corporation Berhad better, we need to consider many other factors. For instance, we've identified 1 warning sign for Supermax Corporation Berhad that you should be aware of.

For those who like to find winning investments this free list of undervalued 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 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.