If You Had Bought Asia Poly Holdings Berhad (KLSE:ASIAPLY) Stock A Year Ago, You Could Pocket A 346% Gain Today

By
Simply Wall St
Published
May 28, 2021
KLSE:ASIAPLY
Source: Shutterstock

It might be of some concern to shareholders to see the Asia Poly Holdings Berhad (KLSE:ASIAPLY) share price down 18% in the last month. But over the last year the share price has taken off like one of Elon Musk's rockets. In fact, it is up 346% in that time. Arguably, the recent fall is to be expected after such a strong rise. While winners often keep winning, it can pay to be cautious after a strong rise.

Check out our latest analysis for Asia Poly Holdings 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 flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Asia Poly Holdings Berhad went from making a loss to reporting a profit, in the last year.

When a company is just on the edge of profitability it can be well worth considering other metrics in order to more precisely gauge growth (and therefore understand share price movements).

We think that the revenue growth of 10% could have some investors interested. We do see some companies suppress earnings in order to accelerate revenue growth.

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

earnings-and-revenue-growth
KLSE:ASIAPLY Earnings and Revenue Growth May 29th 2021

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

We're pleased to report that Asia Poly Holdings Berhad shareholders have received a total shareholder return of 346% over one year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 4% 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. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Like risks, for instance. Every company has them, and we've spotted 5 warning signs for Asia Poly Holdings Berhad (of which 3 are a bit unpleasant!) you should know about.

If you are like me, then you will not want to miss this free list of growing companies that insiders are 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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