Stock Analysis

If You Had Bought Jaya Tiasa Holdings Berhad (KLSE:JTIASA) Shares A Year Ago You'd Have Earned 88% Returns

KLSE:JTIASA
Source: Shutterstock

Jaya Tiasa Holdings Berhad (KLSE:JTIASA) shareholders might be concerned after seeing the share price drop 20% in the last quarter. But that doesn't change the reality that over twelve months the stock has done really well. After all, the share price is up a market-beating 88% in that time.

Check out our latest analysis for Jaya Tiasa Holdings Berhad

Jaya Tiasa Holdings Berhad isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last year Jaya Tiasa Holdings Berhad saw its revenue shrink by 2.2%. Despite the lack of revenue growth, the stock has returned a solid 88% the last twelve months. To us that means that there isn't a lot of correlation between the past revenue performance and the share price, but a closer look at analyst forecasts and the bottom line may well explain a lot.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

earnings-and-revenue-growth
KLSE:JTIASA Earnings and Revenue Growth March 12th 2021

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

A Different Perspective

It's good to see that Jaya Tiasa Holdings Berhad has rewarded shareholders with a total shareholder return of 88% in the last twelve months. There's no doubt those recent returns are much better than the TSR loss of 8% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Jaya Tiasa Holdings Berhad , and understanding them should be part of your investment process.

We will like Jaya Tiasa Holdings 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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