Mah Sing Group Berhad Shareholders (KLSE :MAHSING) are currently in the red because they invested five years ago.

Statistically, long-term investing is profitable. However, it is possible to buy too high. Here’s an example: Mah Sing Group Berhad (KLSE:MAHSINGIn the past decade, the share price fell 62%. We feel sorry for shareholders who bought at the top. Last week saw the share price slide another 5.9%.

It is worth assessing whether the company’s economics are in line with these low shareholder returns or if there has been some discrepancy between them. Let’s do this.

View our latest analysis for Mah Sing Group Berhad

Buffett said, “Ships will sail all over the globe but the Flat Earth Society is going to thrive.” There will always be large discrepancies in price and value in this marketplace …’ One method to analyze how market sentiment has changed over history is to look at the interaction of a company’s share prices and its earnings-per-share (EPS).

In five years, Mah Sing Group Berhad has seen both its share price and EPS decline. The former declined at an average 18% annually. The 17% annual decline in share price is remarkably similar to this EPS change. This shows that market participants still have a positive view of the company. It is safe to say that the share price has reacted to changes in EPS.

Below you can see how EPS has changed over the years. Click on the image to find the exact values.

While Mah Sing Group Berhad’s bottom line has been improving, is the company able to increase its revenue? This could be a good place to start. No cost report showing analyst revenue forecasts.

What about Dividends?

When looking at investment returns it is important that you consider the differences between Total shareholder return (TSR). share price return. While the share price returns only reflect the change in the share prices, the TSR also includes the value dividends (assuming they were reinvested) and any discount capital raising or spinoff. The TSR provides a better picture of stocks that pay dividends. Mah Sing Group Berhad’s TSR is -52% in the last five years. This is higher than the share price return we mentioned previously. Its dividend payments are largely responsible for this.

A Different Perspective

We regret to announce that Mah Sing Group Berhad shareholders fell 15% in the last year, including dividends. This is worse than the 0.1% decline in the wider market. But it may be that the share prices have been affected by wider market jitters. In the event of a great opportunity, it might be worthwhile to keep an eye on fundamentals. Last year’s performance was disappointing. The shareholders lost 9% over five consecutive years. While we are aware that Baron Rothschild said that investors should “buy when there’s blood on the streets”, we warn that investors need to ensure that they only buy high-quality businesses. It’s always fascinating to observe the share price performance over a longer period. We need to take into account many other factors in order to better understand Mah Sing Group Berhad. One example: 1 warning sign for Mah Sing Group Berhad These are the things you need to be aware of.

Of course Mah Sing Group Berhad might not be the best stock for you to buy. This is why you might want to see it. No cost collection of growth stocks.

Please note that the market returns in this article are the market weighted average returns for stocks currently trading on MY exchanges.

Give feedback about this article Have a question about the content? Get in touch Get in touch with us. Alternatively, email editorial-team (at) simplywallst.com.

This article is by Simply Wall St. It is general in nature. We only provide commentary on historical data and analyst projections. Our articles are not meant to be considered financial advice. This analysis does not represent a recommendation to purchase or sell any stock and it does not consider your financial goals or financial situation. We strive to deliver long-term focused analysis that is based on fundamental data. Please note that our analysis might not include the most recent announcements from price-sensitive companies or qualitative material. Simply Wall St does not hold any position in the stocks mentioned.

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