Is Hiap Teck Venture Berhad's (KLSE:HIAPTEK) Share Price Gain Of 130% Well Earned?

Unless you borrow money to invest, the potential losses are limited. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! For example, the Hiap Teck Venture Berhad (KLSE:HIAPTEK) share price has soared 130% in the last year. Most would be very happy with that, especially in just one year! Also pleasing for shareholders was the 52% gain in the last three months. Zooming out, the stock is actually down 8.6% in the last three years.

Check out our latest analysis for Hiap Teck Venture Berhad

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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).

During the last year Hiap Teck Venture Berhad grew its earnings per share (EPS) by 24%. This EPS growth is significantly lower than the 130% increase in the share price. This indicates that the market is now more optimistic about the stock.

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

Dive deeper into Hiap Teck Venture Berhad's key metrics by checking this interactive graph of Hiap Teck Venture Berhad's earnings, revenue and cash flow.

A Different Perspective

We're pleased to report that Hiap Teck Venture Berhad shareholders have received a total shareholder return of 131% over one year. That's including the dividend. That's better than the annualised return of 14% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. 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. Take risks, for example - Hiap Teck Venture Berhad has 3 warning signs (and 1 which is a bit unpleasant) we think you should know about.

We will like Hiap Teck Venture 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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