OSK Holdings Berhad's(KLSE:OSK) Share Price Is Down 21% Over The Past Three Years.

Investors are understandably disappointed when a stock they own declines in value. But when the market is down, you're bound to have some losers. The OSK Holdings Berhad (KLSE:OSK) is down 21% over three years, but the total shareholder return is -7.8% once you include the dividend. That's better than the market which declined 21% over the last three years. Unhappily, the share price slid 2.4% in the last week.

Check out our latest analysis for OSK Holdings Berhad

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. 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).

OSK Holdings Berhad saw its EPS decline at a compound rate of 3.6% per year, over the last three years. This reduction in EPS is slower than the 8% annual reduction in the share price. So it seems the market was too confident about the business, in the past. This increased caution is also evident in the rather low P/E ratio, which is sitting at 4.57.

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

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

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for OSK Holdings Berhad the TSR over the last 3 years was -7.8%, which is better than the share price return mentioned above. This is largely a result of its dividend payments!

A Different Perspective

We regret to report that OSK Holdings Berhad shareholders are down 14% for the year (even including dividends). Unfortunately, that's worse than the broader market decline of 12%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Longer term investors wouldn't be so upset, since they would have made 0.2%, 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. For example, we've discovered 3 warning signs for OSK Holdings Berhad (2 shouldn't be ignored!) that you should be aware of before investing here.

Of course OSK Holdings Berhad may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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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