Would Shareholders Who Purchased TMC Life Sciences Berhad's (KLSE:TMCLIFE) Stock Three Years Be Happy With The Share price Today?

While not a mind-blowing move, it is good to see that the TMC Life Sciences Berhad (KLSE:TMCLIFE) share price has gained 15% in the last three months. But that doesn't change the fact that the returns over the last three years have been less than pleasing. After all, the share price is down 35% in the last three years, significantly under-performing the market.

See our latest analysis for TMC Life Sciences Berhad

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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 three years that the share price fell, TMC Life Sciences Berhad's earnings per share (EPS) dropped by 4.9% each year. This reduction in EPS is slower than the 13% annual reduction in the share price. So it seems the market was too confident about the business, in the past. Having said that, the market is still optimistic, given the P/E ratio of 61.24.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

It might be well worthwhile taking a look at our free report on TMC Life Sciences Berhad's earnings, revenue and cash flow.

A Different Perspective

While the broader market gained around 6.6% in the last year, TMC Life Sciences Berhad shareholders lost 11% (even including dividends). 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. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 3% over the last half decade. 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 TMC Life Sciences Berhad better, we need to consider many other factors. For example, we've discovered 2 warning signs for TMC Life Sciences Berhad (1 is significant!) that you should be aware of before investing here.

We will like TMC Life Sciences 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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