Investing in MMAG Holdings Berhad (KLSE:MMAG) a year ago would have delivered you a 95% gain
Passive investing in index funds can generate returns that roughly match the overall market. But investors can boost returns by picking market-beating companies to own shares in. To wit, the MMAG Holdings Berhad (KLSE:MMAG) share price is 95% higher than it was a year ago, much better than the market return of around 15% (not including dividends) in the same period. That’s a solid performance by our standards! Zooming out, the stock is actually down 92% in the last three years.
Let’s take a look at the underlying fundamentals over the longer term, and see if they’ve been consistent with shareholders returns.
Check out our latest analysis for MMAG Holdings Berhad
Because MMAG Holdings Berhad made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn’t make profits, we’d generally hope to see good revenue growth. That’s because it’s hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In the last year MMAG Holdings Berhad saw its revenue grow by 17%. We respect that sort of growth, no doubt. Buyers pushed the share price 95% in response, which isn’t unreasonable. If the company can maintain the revenue growth, the share price could go higher still. But it’s crucial to check profitability and cash flow before forming a view on the future.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
If you are thinking of buying or selling MMAG Holdings Berhad stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
We’re pleased to report that MMAG Holdings Berhad shareholders have received a total shareholder return of 95% over one year. Notably the five-year annualised TSR loss of 14% per year compares very unfavourably with the recent share price performance. 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. 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. Take risks, for example – MMAG Holdings Berhad has 4 warning signs (and 3 which make us uncomfortable) we think you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Malaysian exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.