Stock Analysis

Announcing: Public Packages Holdings Berhad (KLSE:PPHB) Stock Increased An Energizing 123% In The Last Five Years

KLSE:PPHB
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When you buy a stock there is always a possibility that it could drop 100%. But on a lighter note, a good company can see its share price rise well over 100%. Long term Public Packages Holdings Berhad (KLSE:PPHB) shareholders would be well aware of this, since the stock is up 123% in five years. It's also good to see the share price up 62% over the last quarter.

Check out our latest analysis for Public Packages Holdings Berhad

There is no denying that markets are sometimes efficient, but prices do not always reflect 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 five years of share price growth, Public Packages Holdings Berhad achieved compound earnings per share (EPS) growth of 9.0% per year. This EPS growth is slower than the share price growth of 17% per year, over the same period. This suggests that market participants hold the company in higher regard, these days. That's not necessarily surprising considering the five-year track record of earnings growth.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

earnings-per-share-growth
KLSE:PPHB Earnings Per Share Growth January 15th 2021

Dive deeper into Public Packages Holdings Berhad's key metrics by checking this interactive graph of Public Packages Holdings Berhad's earnings, revenue and cash flow.

A Different Perspective

While the broader market gained around 6.9% in the last year, Public Packages Holdings Berhad shareholders lost 10% (even including dividends). However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 18%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. 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 Public Packages Holdings 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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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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