Stock Analysis

How Much Did Paramount Corporation Berhad's (KLSE:PARAMON) Shareholders Earn On Their Investment Over The Last Year?

KLSE:PARAMON
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Paramount Corporation Berhad (KLSE:PARAMON) shareholders should be happy to see the share price up 11% in the last month. But that doesn't change the reality of under-performance over the last twelve months. In fact the stock is down 39% in the last year, well below the market return.

See our latest analysis for Paramount Corporation Berhad

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just 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).

Unfortunately Paramount Corporation Berhad reported an EPS drop of 68% for the last year. This fall in the EPS is significantly worse than the 39% the share price fall. It may have been that the weak EPS was not as bad as some had feared. With a P/E ratio of 45.46, it's fair to say the market sees an EPS rebound on the cards.

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

earnings-per-share-growth
KLSE:PARAMON Earnings Per Share Growth November 24th 2020

This free interactive report on Paramount Corporation Berhad's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Paramount Corporation Berhad's total shareholder return (TSR) and its share price return. 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. Paramount Corporation Berhad's TSR of was a loss of 12% for the year. That wasn't as bad as its share price return, because it has paid dividends.

A Different Perspective

Investors in Paramount Corporation Berhad had a tough year, with a total loss of 12%, against a market gain of about 4.7%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 5% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. 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 Paramount Corporation Berhad (2 make us uncomfortable!) that you should be aware of before investing here.

We will like Paramount Corporation 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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