I am happy to report this. Dutch Lady Milk Industries Berhad (KLSE:DLADY) is up 32% in the last quarter. But if you look at the past five years, the returns haven't been that good. In fact, stocks are down 52%, far short of the returns you'd get by buying index funds.
The past five years have been tough for shareholders of Dutch company Lady Milk Industries Berhad, but last week there were signs of hope. So let's take a look at the long-term fundamentals and see if they are driving the negative returns.
Check out our latest analysis for Dutch Lady Milk Industries Berhad.
in his essay Graham & Doddsville SuperInvestors Warren Buffett has said that stock prices do not always rationally reflect the value of a company. By comparing earnings per share (EPS) and share price changes over time, we can learn how investor attitudes to a company have changed over time.
Over the five years that the share price fell, Dutch Lady Milk Industries Berhad's earnings per share (EPS) fell by 11% each year. Readers should note that the stock price has fallen faster than his EPS over this period, at a rate of 14% per year. So it seems like the market used to have too much confidence in this business.
You can see below how EPS has changed over time (unveil the exact values by clicking on the image).
We know that Dutch Lady Milk Industries Berhad has been improving its earnings lately, but will its earnings grow? If you're interested, check out this free A report showing consensus revenue forecasts.
What will happen to the dividend?
When looking at return on investment, it is important to consider the following differences: Total shareholder return (TSR) and stock price return. 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 increases and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return delivered by a stock. Coincidentally, Dutch company Lady Milk Industries Berhad's TSR over the past five years was -48%, which is better than the share price return mentioned above. Therefore, the dividend paid by the company is total Shareholder returns.
different perspective
It's good to see that Dutch Lady Milk Industries Berhad shareholders received a total shareholder return of 18% last year. Of course, this includes dividends. Notably, the five-year annualized TSR loss is 8% per year, which compares very unfavorably to recent share price performance. While we typically value long-term performance over short-term performance, recent improvements may signal a (positive) inflection point within the business. It's always interesting to track stock performance over the long term. But to understand Dutch Lady Milk Industries Berhad better, we need to consider many other factors. For example, we discovered that 1 warning sign for Lady Milk Industries Berhad in the Netherlands What you need to know before investing here.
of course, You may find a great investment if you look elsewhere. So take a look at this free A list of companies with expected revenue growth.
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 using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
