WEBULL

2.1% earnings growth over 1 year has not materialized into gains for Inari Amertron Berhad (KLSE:INARI) shareholders over that period

Simply Wall St · 12/30/2025 22:30

Investors can approximate the average market return by buying an index fund. When you buy individual stocks, you can make higher profits, but you also face the risk of under-performance. Unfortunately the Inari Amertron Berhad (KLSE:INARI) share price slid 44% over twelve months. That falls noticeably short of the market decline of around 1.9%. Even if you look out three years, the returns are still disappointing, with the share price down35% in that time. Unfortunately the share price momentum is still quite negative, with prices down 22% in thirty days.

After losing 4.5% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.

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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. 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.

Even though the Inari Amertron Berhad share price is down over the year, its EPS actually improved. It's quite possible that growth expectations may have been unreasonable in the past.

It seems quite likely that the market was expecting higher growth from the stock. But looking to other metrics might better explain the share price change.

In contrast, the 13% drop in revenue is a real concern. If the market sees the weak revenue as jeopardising EPS, that could explain the lower share price.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

earnings-and-revenue-growth
KLSE:INARI Earnings and Revenue Growth December 30th 2025

Inari Amertron Berhad is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. If you are thinking of buying or selling Inari Amertron Berhad stock, you should check out this free report showing analyst consensus estimates for future profits.

A Different Perspective

While the broader market gained around 1.9% in the last year, Inari Amertron Berhad shareholders lost 43% (even including dividends). However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 5% per year over five years. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we've discovered 1 warning sign for Inari Amertron Berhad that you should be aware of before investing here.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation).

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