SDS Group Berhad (KLSE:SDS) shareholders might be concerned after seeing the share price drop 13% in the last month. But over five years returns have been remarkably great. In fact, during that period, the share price climbed 715%. Impressive! Arguably, the recent fall is to be expected after such a strong rise. But the real question is whether the business fundamentals can improve over the long term. We love happy stories like this one. The company should be really proud of that performance!

Let’s take a look at the underlying fundamentals over the longer term, and see if they’ve been consistent with shareholders returns.

See our latest analysis for SDS 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. 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.

Over half a decade, SDS Group Berhad managed to grow its earnings per share at 49% a year. So the EPS growth rate is rather close to the annualized share price gain of 52% per year. This indicates that investor sentiment towards the company has not changed a great deal. In fact, the share price seems to largely reflect the EPS growth.

The company’s earnings per share (over time) is depicted in the image below (click to see the exact numbers).

It might be well worthwhile taking a look at our free report on SDS Group Berhad’s earnings, revenue and cash flow.

It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It’s fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for SDS Group Berhad the TSR over the last 5 years was 773%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return.

We’re pleased to report that SDS Group Berhad shareholders have received a total shareholder return of 33% over one year. Of course, that includes the dividend. Having said that, the five-year TSR of 54% a year, is even better. Potential buyers might understandably feel they’ve missed the opportunity, but it’s always possible business is still firing on all cylinders. Before deciding if you like the current share price, check how SDS Group Berhad scores on these 3 valuation metrics.