Kawan Food Berhad (KLSE: KAWAN) has had a rough quarter, with its stock price dropping 12%. However, over the past five years, the company’s share price has risen impressively by 69%. While long-term investors have seen good returns, those who bought the stock recently may be feeling the pinch, as it’s down 20% in the past year.
Let’s delve into the numbers. During the last five years, Kawan Food achieved an earnings per share (EPS) growth of 22% annually. Yet, its stock price grew at only 11% on average each year. This discrepancy suggests that investors may be feeling less optimistic about the company despite its solid earnings growth.
In terms of total shareholder return (TSR), Kawan Food has performed even better. Over five years, its TSR stood at 87% due to dividend payments. This is significantly higher than the stock price return alone, reflecting the importance of dividends in a company’s overall performance.
Despite these positive historical trends, the present isn’t as bright. Shareholders are down 15% for the year, even with dividends included, which is worse than the overall market decline of 0.1%. Yet, it’s essential to remember that stock prices can be volatile, especially in tough market conditions.
Experts advise investors to focus on the company’s fundamentals and long-term growth potential rather than short-term price fluctuations. Kawan Food does show signs of underlying strength, and some believe that current low prices could represent a buying opportunity.
To illustrate this, a recent survey by the Malaysian Institute of Economic Research indicated that consumer spending on food and beverage is expected to increase by 5% over the next year, hinting at a positive market environment ahead for companies in this sector.
In summary, while Kawan Food Berhad’s recent performance raises concerns for immediate investors, the long-term outlook remains promising. For those keeping an eye on the company’s developments, the current market drop might just be a chance to invest lower.
For more detailed analysis, you can check out the latest insights on Kawan Food here.
Check out this related article: Essential Insights: Natrona County Health & Food Inspections for March 10-16, 2025
Source linkKawan Food Berhad, earnings per share, share price, TSR
