By buying an index fund, you can roughly match the market return with ease. But if you buy good businesses at attractive prices, your portfolio returns could exceed the average market return. Just take a look at Tiong Nam Logistics Holdings Berhad (KLSE:TNLOGIS), which is up 69%, over three years, soundly beating the market decline of 4.7% (not including dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 7.0% in the last year.

With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.

Check out our latest analysis for Tiong Nam Logistics Holdings Berhad

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Tiong Nam Logistics Holdings Berhad was able to grow its EPS at 235% per year over three years, sending the share price higher. This EPS growth is higher than the 19% average annual increase in the share price. So it seems investors have become more cautious about the company, over time.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

We know that Tiong Nam Logistics Holdings Berhad has improved its bottom line over the last three years, but what does the future have in store? This free interactive report on Tiong Nam Logistics Holdings Berhad's balance sheet strength is a great place to start, if you want to investigate the stock further.

What About The Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Tiong Nam Logistics Holdings Berhad's total shareholder return (TSR) and its share price return. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Tiong Nam Logistics Holdings Berhad's TSR of 71% for the 3 years exceeded its share price return, because it has paid dividends.

A Different Perspective

It's good to see that Tiong Nam Logistics Holdings Berhad has rewarded shareholders with a total shareholder return of 7.0% in the last twelve months. That certainly beats the loss of about 5% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand Tiong Nam Logistics Holdings Berhad better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Tiong Nam Logistics Holdings Berhad you should be aware of, and 1 of them doesn't sit too well with us.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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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