How Much Did Excel Force MSC Berhad's(KLSE:EFORCE) Shareholders Earn From Share Price Movements Over The Last Three Years?

If you are building a properly diversified stock portfolio, the chances are some of your picks will perform badly. But long term Excel Force MSC Berhad (KLSE:EFORCE) shareholders have had a particularly rough ride in the last three year. Unfortunately, they have held through a 67% decline in the share price in that time. It's up 2.4% in the last seven days.

View our latest analysis for Excel Force MSC Berhad

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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 the unfortunate three years of share price decline, Excel Force MSC Berhad actually saw its earnings per share (EPS) improve by 7.6% per year. This is quite a puzzle, and suggests there might be something temporarily buoying the share price. Alternatively, growth expectations may have been unreasonable in the past.

Since the change in EPS doesn't seem to correlate with the change in share price, it's worth taking a look at other metrics.

We note that, in three years, revenue has actually grown at a 3.9% annual rate, so that doesn't seem to be a reason to sell shares. It's probably worth investigating Excel Force MSC Berhad further; while we may be missing something on this analysis, there might also be an opportunity.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

We know that Excel Force MSC Berhad has improved its bottom line lately, but what does the future have in store? If you are thinking of buying or selling Excel Force MSC Berhad stock, you should check out this free report showing analyst profit forecasts.

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. 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. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Excel Force MSC Berhad, it has a TSR of -65% for the last 3 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments!

A Different Perspective

Excel Force MSC Berhad shareholders are down 6.6% for the year (even including dividends), but the market itself is up 7.5%. 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 0.6%, 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. It's always interesting to track share price performance over the longer term. But to understand Excel Force MSC Berhad better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with Excel Force MSC Berhad (including 1 which is a bit unpleasant) .

We will like Excel Force MSC 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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