Kerjaya Prospek Group Berhad (KLSE:KERJAYA) shareholders have experienced a loss of 9.3% over the past five years, raising concerns about their investment in the company. The share price has fallen by 24% during this period, prompting investors to question the underlying fundamentals of the business.
To understand the market’s perception of Kerjaya Prospek Group Berhad, it’s important to compare the change in earnings per share (EPS) with the movement of the share price. Over the past five years, both the share price and EPS of the company have declined, with EPS decreasing at a rate of 2.3% per year. However, the reduction in EPS is less than the 5% annual decrease in the share price, suggesting that the market is now more cautious about the business.
Despite the decline in share price, Kerjaya Prospek Group Berhad has recently improved its bottom line. However, the question remains whether the company will be able to grow its revenue in the future.
When analyzing investment returns, it’s important to consider the difference between total shareholder return (TSR) and share price return. The TSR takes into account the value of spin-offs, discounted capital raisings, and dividends. In the case of Kerjaya Prospek Group Berhad, the TSR for the last five years is -9.3%, exceeding the share price return. This can be largely attributed to dividend payments.
However, there is some positive news for shareholders. Over the past year, they have received a total shareholder return of 6.3%, including dividends. This is a significant improvement compared to the TSR loss of 1.8% per year over the past five years. While it’s essential to consider the impact of market conditions on share prices, other factors such as risks should also be taken into account.
It’s worth noting that Kerjaya Prospek Group Berhad may not be the best stock to buy. Investors should conduct thorough research and consider other growth stocks.
Please note that the market returns mentioned in this article reflect the average returns of stocks currently trading on Malaysian exchanges.
In conclusion, shareholders of Kerjaya Prospek Group Berhad have faced a loss over the past five years. The company’s share price has declined significantly, raising concerns among investors. However, recent improvements in the bottom line and positive returns over the past year may suggest a potential turning point for the business. As always, investors should carefully consider market conditions and other factors before making any investment decisions.
