Investors Who Bought PNE PCB Berhad (KLSE:PNEPCB) Shares Five Years Ago Are Now Up 198%

When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose your money. But on a lighter note, a good company can see its share price rise well over 100%. For instance, the price of PNE PCB Berhad (KLSE:PNEPCB) stock is up an impressive 198% over the last five years. It's also up 34% in about a month.

Check out our latest analysis for PNE PCB Berhad

PNE PCB Berhad isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last 5 years PNE PCB Berhad saw its revenue shrink by 2.4% per year. Given that scenario, we wouldn't have expected the share price to rise 24% per year, but that's what it did. It's a good reminder that expectations about the future, not the past history, always impact share prices. Still, this situation makes us a little wary of the stock.

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

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

A Different Perspective

It's nice to see that PNE PCB Berhad shareholders have received a total shareholder return of 145% over the last year. That gain is better than the annual TSR over five years, which is 24%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 5 warning signs with PNE PCB Berhad (at least 2 which are a bit unpleasant) , and understanding them should be part of your investment process.

But note: PNE PCB 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 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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