Stock Analysis

CJ Century Logistics Holdings Berhad's(KLSE:CJCEN) Share Price Is Down 57% Over The Past Three Years.

KLSE:CJCEN
Source: Shutterstock

CJ Century Logistics Holdings Berhad (KLSE:CJCEN) shareholders will doubtless be very grateful to see the share price up 39% in the last quarter. But that is small recompense for the exasperating returns over three years. In that time, the share price dropped 57%. So it's good to see it climbing back up. While many would remain nervous, there could be further gains if the business can put its best foot forward.

Check out our latest analysis for CJ Century Logistics Holdings Berhad

Given that CJ Century Logistics Holdings Berhad didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. When a company doesn't make profits, we'd generally expect to see good 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 three years, CJ Century Logistics Holdings Berhad saw its revenue grow by 20% per year, compound. That's a fairly respectable growth rate. So some shareholders would be frustrated with the compound loss of 16% per year. To be frank we're surprised to see revenue growth and share price growth diverge so strongly. So this is one stock that might be worth investigating further, or even adding to your watchlist.

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

earnings-and-revenue-growth
KLSE:CJCEN Earnings and Revenue Growth November 20th 2020

If you are thinking of buying or selling CJ Century Logistics Holdings Berhad stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's nice to see that CJ Century Logistics Holdings Berhad shareholders have received a total shareholder return of 23% over the last year. There's no doubt those recent returns are much better than the TSR loss of 7% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand CJ Century Logistics Holdings Berhad better, we need to consider many other factors. For example, we've discovered 5 warning signs for CJ Century Logistics Holdings Berhad (3 are a bit concerning!) that you should be aware of before investing here.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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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