Raffles Medical Group's (SGX:BSL) investors will be pleased with their decent 38% return over the last year

By
Simply Wall St
Published
January 12, 2022
SGX:BSL
Source: Shutterstock

It hasn't been the best quarter for Raffles Medical Group Ltd (SGX:BSL) shareholders, since the share price has fallen 15% in that time. But looking back over the last year, the returns have actually been rather pleasing! After all, the share price is up a market-beating 36% in that time.

So let's assess the underlying fundamentals over the last 1 year and see if they've moved in lock-step with shareholder returns.

See our latest analysis for Raffles Medical Group

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 Raffles Medical Group grew its earnings per share (EPS) by 75%. This EPS growth is significantly higher than the 36% increase in the share price. So it seems like the market has cooled on Raffles Medical Group, despite the growth. Interesting.

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

earnings-per-share-growth
SGX:BSL Earnings Per Share Growth January 12th 2022

We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. It might be well worthwhile taking a look at our free report on Raffles Medical Group's earnings, revenue and cash flow.

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Raffles Medical Group's total shareholder return (TSR) and its share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Dividends have been really beneficial for Raffles Medical Group shareholders, and that cash payout contributed to why its TSR of 38%, over the last 1 year, is better than the share price return.

A Different Perspective

It's good to see that Raffles Medical Group has rewarded shareholders with a total shareholder return of 38% in the last twelve months. That certainly beats the loss of about 0.2% per year over the last half decade. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. If you want to research this stock further, the data on insider buying is an obvious place to start. You can click here to see who has been buying shares - and the price they paid.

Raffles Medical Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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

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