SEOHAN Const. & Eng.co.Ltd's(KOSDAQ:011370) Share Price Is Down 37% Over The Past Three Years.

In order to justify the effort of selecting individual stocks, it's worth striving to beat the returns from a market index fund. But if you try your hand at stock picking, your risk returning less than the market. We regret to report that long term SEOHAN Const. & Eng.co.,Ltd (KOSDAQ:011370) shareholders have had that experience, with the share price dropping 37% in three years, versus a market return of about 30%. It's down 3.8% in the last seven days.

View our latest analysis for SEOHAN Const. & Eng.co.Ltd

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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.

During the three years that the share price fell, SEOHAN Const. & Eng.co.Ltd's earnings per share (EPS) dropped by 43% each year. This fall in the EPS is worse than the 14% compound annual share price fall. So, despite the prior disappointment, shareholders must have some confidence the situation will improve, longer term.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between SEOHAN Const. & Eng.co.Ltd'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. SEOHAN Const. & Eng.co.Ltd's TSR of was a loss of 33% for the 3 years. That wasn't as bad as its share price return, because it has paid dividends.

A Different Perspective

SEOHAN Const. & Eng.co.Ltd provided a TSR of 31% over the last twelve months. Unfortunately this falls short of the market return. The silver lining is that the gain was actually better than the average annual return of 1.7% per year over five year. This could indicate that the company is winning over new investors, as it pursues its strategy. 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 instance, we've identified 1 warning sign for SEOHAN Const. & Eng.co.Ltd that you should be aware of.

Of course SEOHAN Const. & Eng.co.Ltd may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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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