Malakoff Corporation Berhad (KLSE:MALAKOF) rallies 6.9% this week, taking one-year gains to 46%

The simplest way to invest in stocks is to buy exchange traded funds. But investors can boost returns by picking market-beating companies to own shares in. For example, the Malakoff Corporation Berhad (KLSE:MALAKOF) share price is up 39% in the last 1 year, clearly besting the market return of around 6.5% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! Also impressive, the stock is up 30% over three years, making long term shareholders happy, too.

Since it's been a strong week for Malakoff Corporation Berhad shareholders, let's have a look at trend of the longer term fundamentals.

See our latest analysis for Malakoff Corporation Berhad

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During the last year Malakoff Corporation Berhad grew its earnings per share (EPS) by 66%. Though we do note extraordinary items affected the bottom line. This EPS growth is significantly higher than the 39% increase in the share price. Therefore, it seems the market isn't as excited about Malakoff Corporation Berhad as it was before. This could be an opportunity.

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

We know that Malakoff Corporation Berhad has improved its bottom line lately, but is it going to grow revenue? If you're interested, you could check this free report showing consensus revenue forecasts.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Malakoff Corporation Berhad, it has a TSR of 46% for the last 1 year. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

It's nice to see that Malakoff Corporation Berhad shareholders have received a total shareholder return of 46% over the last year. Of course, that includes the dividend. That's better than the annualised return of 8% 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. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that Malakoff Corporation Berhad is showing 2 warning signs in our investment analysis , and 1 of those can't be ignored...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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.