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Should Tiong Woon Corporation Holding (SGX:BQM) Be Disappointed With Their 64% Profit?

Simply Wall St

Tiong Woon Corporation Holding Ltd (SGX:BQM) shareholders might be concerned after seeing the share price drop 25% in the last quarter. But don't let that distract from the very nice return generated over three years. To wit, the share price did better than an index fund, climbing 64% during that period.

Check out our latest analysis for Tiong Woon Corporation Holding

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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.

During three years of share price growth, Tiong Woon Corporation Holding moved from a loss to profitability. That would generally be considered a positive, so we'd expect the share price to be up.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

SGX:BQM Past and Future Earnings May 18th 2020

Dive deeper into Tiong Woon Corporation Holding's key metrics by checking this interactive graph of Tiong Woon Corporation Holding's earnings, revenue and cash flow.

What about the Total Shareholder Return (TSR)?

We've already covered Tiong Woon Corporation Holding's share price action, but we should also mention its total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Its history of dividend payouts mean that Tiong Woon Corporation Holding's TSR of 65% over the last 3 years is better than the share price return.

A Different Perspective

It's nice to see that Tiong Woon Corporation Holding shareholders have received a total shareholder return of 36% over the last year. Of course, that includes the dividend. Notably the five-year annualised TSR loss of 0.6% 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. It's always interesting to track share price performance over the longer term. But to understand Tiong Woon Corporation Holding better, we need to consider many other factors. For example, we've discovered 3 warning signs for Tiong Woon Corporation Holding (1 makes us a bit uncomfortable!) that you should be aware of before investing here.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on SG exchanges.

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This article by Simply Wall St is general in nature. 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. Thank you for reading.