Stock Analysis

If You Had Bought Rubberex Corporation (M) Berhad (KLSE:RUBEREX) Stock A Year Ago, You Could Pocket A 780% Gain Today

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It might be of some concern to shareholders to see the Rubberex Corporation (M) Berhad (KLSE:RUBEREX) share price down 23% in the last month. But that cannot eclipse the spectacular share price rise we've seen over the last twelve months. In fact, it is up 780% in that time. So we wouldn't blame sellers for taking some profits. Only time will tell if there is still too much optimism currently reflected in the share price.

We love happy stories like this one. The company should be really proud of that performance!

Check out our latest analysis for Rubberex Corporation (M) Berhad

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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).

Rubberex Corporation (M) Berhad boasted truly magnificent EPS growth in the last year. We don't think the exact number is a good guide to the sustainable growth rate, but we do think this sort of increase is impressive. We are not surprised the share price is up. To us, inflection points like this are the best time to take a close look at a stock.

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

earnings-per-share-growth
KLSE:RUBEREX Earnings Per Share Growth December 18th 2020

We know that Rubberex Corporation (M) Berhad has improved its bottom line over the last three years, but what does the future have in store? This free interactive report on Rubberex Corporation (M) Berhad's balance sheet strength is a great place to start, if you want to investigate the stock further.

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for Rubberex Corporation (M) Berhad the TSR over the last year was 797%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

It's good to see that Rubberex Corporation (M) Berhad has rewarded shareholders with a total shareholder return of 797% in the last twelve months. That's including the dividend. That's better than the annualised return of 42% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. 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. To that end, you should be aware of the 2 warning signs we've spotted with Rubberex Corporation (M) Berhad .

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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