Daewon Sanup's(KOSDAQ:005710) Share Price Is Down 29% Over The Past Three Years.

As an investor its worth striving to ensure your overall portfolio beats the market average. But in any portfolio, there are likely to be some stocks that fall short of that benchmark. Unfortunately, that's been the case for longer term Daewon Sanup Co., Ltd (KOSDAQ:005710) shareholders, since the share price is down 29% in the last three years, falling well short of the market return of around 30%.

Check out our latest analysis for Daewon Sanup

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

During the three years that the share price fell, Daewon Sanup's earnings per share (EPS) dropped by 49% each year. This fall in the EPS is worse than the 11% compound annual share price fall. This suggests that the market retains some optimism around long term earnings stability, despite past EPS declines.

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

Dive deeper into Daewon Sanup's key metrics by checking this interactive graph of Daewon Sanup's earnings, revenue and cash flow.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). 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. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Daewon Sanup, it has a TSR of -24% for the last 3 years. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence!

A Different Perspective

Daewon Sanup shareholders gained a total return of 9.2% during the year. But that was short of the market average. On the bright side, that's still a gain, and it's actually better than the average return of 1.6% over half a decade This suggests the company might be improving over time. It's always interesting to track share price performance over the longer term. But to understand Daewon Sanup better, we need to consider many other factors. Take risks, for example - Daewon Sanup has 2 warning signs we think you should be aware of.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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

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This article by Simply Wall St is general in nature. 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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