HeiTech Padu Berhad (KLSE:HTPADU) shareholder returns have been stellar, earning 228% in 1 year

Unless you borrow money to invest, the potential losses are limited. But if you pick the right business to buy shares in, you can make more than you can lose. For example, the HeiTech Padu Berhad (KLSE:HTPADU) share price has soared 228% return in just a single year. Also pleasing for shareholders was the 161% gain in the last three months. Looking back further, the stock price is 66% higher than it was three years ago.

The past week has proven to be lucrative for HeiTech Padu Berhad investors, so let's see if fundamentals drove the company's one-year performance.

View our latest analysis for HeiTech Padu 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 last year HeiTech Padu Berhad grew its earnings per share, moving from a loss to a profit.

When a company is just on the edge of profitability it can be well worth considering other metrics in order to more precisely gauge growth (and therefore understand share price movements).

Unfortunately HeiTech Padu Berhad's fell 4.5% over twelve months. So using a snapshot of key business metrics doesn't give us a good picture of why the market is bidding up the stock.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

If you are thinking of buying or selling HeiTech Padu Berhad stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We're pleased to report that HeiTech Padu Berhad shareholders have received a total shareholder return of 228% over one year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 22% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand HeiTech Padu Berhad better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for HeiTech Padu Berhad you should be aware of, and 1 of them is concerning.

But note: HeiTech Padu Berhad may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Malaysian exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.