CAB Cakaran Corporation Berhad (KLSE:CAB) shareholders might be concerned after seeing the share price drop 10% in the last week. But that doesn't change the fact that the returns over the last three years have been very strong. In three years the stock price has launched 116% higher: a great result. After a run like that some may not be surprised to see prices moderate. The thing to consider is whether the underlying business is doing well enough to support the current price.
Since the long term performance has been good but there's been a recent pullback of 10%, let's check if the fundamentals match the share price.
View our latest analysis for CAB Cakaran Corporation Berhad
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
CAB Cakaran Corporation Berhad became profitable within the last three years. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
It is of course excellent to see how CAB Cakaran Corporation Berhad has grown profits over the years, but the future is more important for shareholders. You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
A Different Perspective
We're pleased to report that CAB Cakaran Corporation Berhad shareholders have received a total shareholder return of 29% over one year. Notably the five-year annualised TSR loss of 6% per year compares very unfavourably with the recent share price performance. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand CAB Cakaran Corporation Berhad better, we need to consider many other factors. For instance, we've identified 3 warning signs for CAB Cakaran Corporation Berhad (1 is a bit unpleasant) that you should be aware of.
But note: CAB Cakaran Corporation 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 Malaysian exchanges.