Newcapec Electronics' reinvestment of capital has been generating the same low return. Over the last five years, total return to shareholders has been flat, suggesting it may not be a multi-bagger.

Newcapec Electronics' low P/E ratio may be due to expectations of underperforming earnings growth. The company's recent medium-term earnings decline is putting its P/E ratio below most others. Unless conditions improve, they will continue to hinder the share price.

Despite EPS growth, market enthusiasm for the stock is waning. Dividend payments largely explain the TSR-share price return divergence. Short term problems may be looming for the company, warranting close shareholder scrutiny. Newcapec Electronics' investment analysis also raises a red flag.