Can You Imagine How Hil Industries Berhad's (KLSE:HIL) Shareholders Feel About The 84% Share Price Increase?
It hasn't been the best quarter for Hil Industries Berhad (KLSE:HIL) shareholders, since the share price has fallen 13% in that time. While that might be a setback, it doesn't negate the nice returns received over the last twelve months. Looking at the full year, the company has easily bested an index fund by gaining 84%.
See our latest analysis for Hil Industries Berhad
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
Hil Industries Berhad was able to grow EPS by 15% in the last twelve months. The share price gain of 84% certainly outpaced the EPS growth. This indicates that the market is now more optimistic about the stock.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
We know that Hil Industries Berhad has improved its bottom line lately, but is it going to grow revenue? You could check out this free report showing analyst revenue forecasts.
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 is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Hil Industries Berhad the TSR over the last year was 88%, which is better than the share price return mentioned above. This is largely a result of its dividend payments!
A Different Perspective
We're pleased to report that Hil Industries Berhad shareholders have received a total shareholder return of 88% over one year. Of course, that includes the dividend. That gain is better than the annual TSR over five years, which is 16%. Therefore it seems like sentiment around the company has been positive lately. 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 1 warning sign we've spotted with Hil Industries Berhad .
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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About KLSE:HIL
Hil Industries Berhad
An investment holding company, manufactures and sells industrial and domestic molded plastic products in Malaysia and the People’s Republic of China.
Flawless balance sheet, undervalued and pays a dividend.