In order to justify the effort of selecting individual stocks, it is worth striving to beat the returns of a market index fund. But if you try your hand at stock picking, your risk of coming back less than the market. We regret to report that in the long term AFFIN Berhad Bank The shareholders (KLSE: AFFIN) have lived this experience, the share price having fallen by 20% in three years, against a market decline of around 8.9%. In contrast, the share price rebounded 6.1% over the past week.

As the stock rose 6.1% last week but long-term shareholders are still in the red, let’s see what the fundamentals can tell us.

See our latest analysis for AFFIN Bank Berhad

To paraphrase Benjamin Graham: In the short term the market is a voting machine, but in the long term it is a weighing machine. By comparing earnings per share (EPS) and changes in stock prices over time, we can get a sense of how investors’ attitudes towards a company have changed over time.

During the three years that the stock price fell, the earnings per share (EPS) of AFFIN Bank Berhad fell by 19% each year. This drop in EPS is worse than the compound annual drop in the stock price of 7%. So, despite the previous disappointment, shareholders must have some confidence that the situation will improve, in the longer term.

You can see below how the EPS has evolved over time (see the exact values ​​by clicking on the image).

KLSE: AFFIN Growth in earnings per share at December 30, 2021

This free AFFIN Bank Berhad’s interactive earnings, income and cash flow report is a great place to start if you want to delve deeper into the stock.

What about dividends?

In addition to measuring stock price performance, investors should also consider the total shareholder return (TSR). While the share price return reflects only the change in the share price, the TSR includes the value of dividends (assuming they have been reinvested) and the benefit of any capital increase or spin-off. updated. It’s fair to say that the TSR gives a more complete picture of dividend paying stocks. In the case of AFFIN Bank Berhad, it has a TSR of -15% over the last 3 years. This exceeds its share price return that we mentioned earlier. This is largely the result of his dividend payments!

A different perspective

The last twelve months have not been good for AFFIN Bank Berhad stock, which has performed worse than the market, costing holders 3.0%, including dividends. Meanwhile, the broader market slipped around 1.4%, likely weighing on the stock. However, the loss over the past year is not as bad as the 5% per year loss that investors have suffered over the past three years. We would like clear information suggesting that the company will grow, before considering that the share price will stabilize. While it is worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we discovered 2 warning signs for AFFIN Bank Berhad which you should know before investing here.

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Please note that the market returns quoted in this article reflect the average market weighted returns of stocks currently trading on MY exchanges.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.