Y.S.P. Southeast Asia Holding Berhad (KLSE:YSPSAH) shareholders might be concerned after seeing the share price drop 10% in the last quarter. But looking back over the last year, the returns have actually been rather pleasing! To wit, it had solidly beat the market, up 25%.
So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress.
Check out our latest analysis for Y.S.P. Southeast Asia Holding Berhad
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
During the last year Y.S.P. Southeast Asia Holding Berhad grew its earnings per share (EPS) by 127%. This EPS growth is significantly higher than the 25% increase in the share price. Therefore, it seems the market isn't as excited about Y.S.P. Southeast Asia Holding Berhad as it was before. This could be an opportunity. The caution is also evident in the lowish P/E ratio of 10.00.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. This free interactive report on Y.S.P. Southeast Asia Holding Berhad's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.
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. We note that for Y.S.P. Southeast Asia Holding Berhad the TSR over the last 1 year was 30%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence!
A Different Perspective
We're pleased to report that Y.S.P. Southeast Asia Holding Berhad shareholders have received a total shareholder return of 30% over one year. And that does include the dividend. That gain is better than the annual TSR over five years, which is 2%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Y.S.P. Southeast Asia Holding Berhad (at least 1 which doesn't sit too well with us) , and understanding them should be part of your investment process.