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Earnings grew faster than the 0.5% CAGR delivered to Kuala Lumpur Kepong Berhad (KLSE:KLK) shareholders over the last five years
The Kuala Lumpur Kepong Berhad (KLSE:KLK) stock price is down 12% over five years. But the total shareholder return is 2.5% once you include the dividend. This is better than the market which declined 1.6% over the same time. While it's not completely obvious why the share prices is down, a closer look at the company's history might help explain it.
Is Kuala Lumpur Kepong Berhad's (KLSE:KLK) Recent Performance Tethered To Its Attractive Financial Prospects? Kuala Lumpur Kepong Berhad's (KLSE:KLK) stock is up by 4.1% over the past three months. Return on equity is the rate of return on the capital provided by the company. The higher the ROE, the higher the growth rate of a company's earnings.
Kuala Lumpur Kepong Berhad (KLSE:KLK) Has Affirmed Its Dividend Of MYR0.20 Kuala Lumpur Kepong Berhad (KLSE:KLK) has announced that it will pay a dividend on the 1st of August, with investors receiving MYR0.20 per share. Based on this payment, the dividend yield will be 4.5%, which is fairly typical for the industry. Although the company has a long dividend history, it has been cut at least once in the last 10 years. We think that maintaining the dividend this year may have been a conservative choice.
Kuala Lumpur Kepong Berhad (KLSE:KLK) Shares Could Be 26% Above Their Intrinsic Value Estimate Kuala Lumpur Kepong Berhad (KLSE:KLK) is estimated to be 26% overvalued based on current share price of RM21.90. Analyst price target for KLK is RM23.73, which is 36% above our fair value estimate. We'll look at whether the stock is fairly priced by projecting its future cash flows and then discounting them to today's value.
Kuala Lumpur Kepong Berhad (KLSE:KLK) Is Due To Pay A Dividend Of MYR0.20 Kuala Lumpur Kepong Berhad (KLSE:KLK) has announced that it will pay a dividend on the 1st of August, with investors receiving MYR0.20 per share. The dividend yield will be 4.6% based on this payment which is still above the industry average. The company is paying a reasonable amount of earnings to shareholders, and is growing earnings at a decent rate so we think it could be a decent dividend stock.
Kuala Lumpur Kepong Berhad (KLSE:KLK) investors are sitting on a loss of 6.0% if they invested five years ago Kuala Lumpur Kepong Berhad (KLSE:KLK) shareholders are down 13% for the year (even including dividends) It's not immediately clear to us why the stock price is down but further research might provide some answers. The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail)
Will Weakness in Kuala Lumpur Kepong Berhad's (KLSE:KLK) Stock Prove Temporary Given Strong Fundamentals? Kuala Lumpur Kepong Berhad has a 15% Return on Equity. The higher the ROE, the higher the growth rate of the company's earnings. KLK's current ROE of 15% is higher than the 9.5% industry average.
Shareholders May Be More Conservative With Kuala Lumpur Kepong Berhad's (KLSE:KLK) CEO Compensation For Now Kuala Lumpur Kepong Berhad (KLSE:KLK) has seen its earnings per share (EPS) increase by 51% a year over the past three years. CEO Seri Oi Hian Lee has done a decent job of steering the company in the right direction. Some shareholders may still be hesitant of being overly generous with CEO compensation. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Why You Might Be Interested In Kuala Lumpur Kepong Berhad (KLSE:KLK) For Its Upcoming Dividend Kuala Lumpur Kepong Berhad (KLSE:KLK) is about to trade ex-dividend. The company's next dividend payment will be RM0.80 per share. Last year, the company distributed RM1.00 to shareholders.
Kuala Lumpur Kepong Berhad (KLSE:KLK) Has Announced A Dividend Of MYR0.80 Kuala Lumpur Kepong Berhad (KLSE:KLK) has announced that it will pay a dividend of MYR0.80 per share on the 28th of February. Based on this payment, the dividend yield on the company's stock will be 4.7%. While the company has been paying a dividend for a long time, it has cut the dividend at least once in the last 10 years. The company is paying a reasonable amount of earnings to shareholders and is growing earnings at a decent rate.
Kuala Lumpur Kepong Berhad's (KLSE:KLK) Dividend Will Be MYR0.80 Kuala Lumpur Kepong Berhad (KLSE:KLK) has announced that it will pay a dividend on the 28th of February, with investors receiving MYR0.80 per share. The dividend yield will be 4.6% based on this payment which is still above the industry average. The company is clearly earning enough to pay this type of dividend, but it is definitely focused on returning cash to shareholders, rather than growing the business.
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