The one-year returns for IFCA MSC Berhad's (KLSE:IFCAMSC) shareholders have been solid, yet its earnings growth was even better

While IFCA MSC Berhad (KLSE:IFCAMSC) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 17% in the last quarter. Despite this, the stock is a strong performer over the last year, no doubt about that. During that period, the share price soared a full 151%. So it is important to view the recent reduction in price through that lense. More important, going forward, is how the business itself is going.

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

See our latest analysis for IFCA MSC 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).

IFCA MSC Berhad was able to grow EPS by 346% in the last twelve months. It's fair to say that the share price gain of 151% did not keep pace with the EPS growth. So it seems like the market has cooled on IFCA MSC Berhad, despite the growth. Interesting. Of course, with a P/E ratio of 51.94, the market remains optimistic.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.

What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. 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. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for IFCA MSC Berhad the TSR over the last 1 year was 153%, which is better than the share price return mentioned above. This is largely a result of its dividend payments!

A Different Perspective

It's nice to see that IFCA MSC Berhad shareholders have received a total shareholder return of 153% over the last year. And that does include the dividend. That's better than the annualised return of 20% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. 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. Even so, be aware that IFCA MSC Berhad is showing 2 warning signs in our investment analysis , and 1 of those is significant...

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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 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.