Perdana Petroleum Berhad (KLSE:PERDANA) delivers shareholders solid 27% CAGR over 3 years, surging 16% in the last week alone
The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But when you pick a company that is really flourishing, you can make more than 100%. To wit, the Perdana Petroleum Berhad (KLSE:PERDANA) share price has flown 103% in the last three years. Most would be happy with that. Also pleasing for shareholders was the 63% gain in the last three months.
The past week has proven to be lucrative for Perdana Petroleum Berhad investors, so let's see if fundamentals drove the company's three-year performance.
See our latest analysis for Perdana Petroleum 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 imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
Perdana Petroleum Berhad became profitable within the last three years. Given the importance of this milestone, it's not overly surprising that the share price has increased strongly.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
It might be well worthwhile taking a look at our free report on Perdana Petroleum Berhad's earnings, revenue and cash flow.
A Different Perspective
It's good to see that Perdana Petroleum Berhad has rewarded shareholders with a total shareholder return of 76% in the last twelve months. Notably the five-year annualised TSR loss of 4% 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. Before deciding if you like the current share price, check how Perdana Petroleum Berhad scores on these 3 valuation metrics.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can 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.
