How Much Did LBS Bina Group Berhad's(KLSE:LBS) Shareholders Earn From Share Price Movements Over The Last Three Years?

The truth is that if you invest for long enough, you're going to end up with some losing stocks. But long term LBS Bina Group Berhad (KLSE:LBS) shareholders have had a particularly rough ride in the last three year. Sadly for them, the share price is down 60% in that time. There was little comfort for shareholders in the last week as the price declined a further 1.2%.

Check out our latest analysis for LBS Bina Group Berhad

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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).

LBS Bina Group Berhad saw its EPS decline at a compound rate of 29% per year, over the last three years. This fall in EPS isn't far from the rate of share price decline, which was 26% per year. That suggests that the market sentiment around the company hasn't changed much over that time, despite the disappointment. Rather, the share price has approximately tracked EPS growth.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

It might be well worthwhile taking a look at our free report on LBS Bina Group Berhad's earnings, revenue and cash flow.

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between LBS Bina Group Berhad's total shareholder return (TSR) and its share price return. Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. LBS Bina Group Berhad's TSR of was a loss of 57% for the 3 years. That wasn't as bad as its share price return, because it has paid dividends.

A Different Perspective

While the broader market gained around 7.5% in the last year, LBS Bina Group Berhad shareholders lost 11%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 4% per year over five years. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. It's always interesting to track share price performance over the longer term. But to understand LBS Bina Group Berhad better, we need to consider many other factors. Take risks, for example - LBS Bina Group Berhad has 2 warning signs (and 1 which shouldn't be ignored) we think you should know about.

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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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