The simplest way to invest in stocks is to buy exchange traded funds. But investors can boost returns by picking market-beating companies to own shares in. For example, the Samaiden Group Berhad (KLSE:SAMAIDEN) share price is up 50% in the last 1 year, clearly besting the market decline of around 5.5% (not including dividends). That's a solid performance by our standards! We'll need to follow Samaiden Group Berhad for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.

So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress.

View our latest analysis for Samaiden Group Berhad

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Samaiden Group Berhad was able to grow EPS by 71% in the last twelve months. It's fair to say that the share price gain of 50% did not keep pace with the EPS growth. Therefore, it seems the market isn't as excited about Samaiden Group Berhad as it was before. This could be an opportunity.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

We know that Samaiden Group Berhad has improved its bottom line lately, but is it going to grow revenue? You could check out this free report showing analyst revenue forecasts.

A Different Perspective

Samaiden Group Berhad boasts a total shareholder return of 50% for the last year. And the share price momentum remains respectable, with a gain of 13% in the last three months. This suggests the company is continuing to win over new investors. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Take risks, for example - Samaiden Group Berhad has 1 warning sign we think you should be aware of.

But note: Samaiden Group Berhad may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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