Investors Who Bought Geumhwa Plant Service & Construction (KOSDAQ:036190) Shares A Year Ago Are Now Up 33%

We believe investing is smart because history shows that stock markets go higher in the long term. But if when you choose to buy stocks, some of them will be below average performers. For example, the Geumhwa Plant Service & Construction Co., Ltd. (KOSDAQ:036190), share price is up over the last year, but its gain of 33% trails the market return. Zooming out, the stock is actually down 22% in the last three years.

See our latest analysis for Geumhwa Plant Service & Construction

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. 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.

Geumhwa Plant Service & Construction was able to grow EPS by 9.1% in the last twelve months. This EPS growth is significantly lower than the 33% increase in the share price. This indicates that the market is now more optimistic about the stock.

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

This free interactive report on Geumhwa Plant Service & Construction's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Geumhwa Plant Service & Construction the TSR over the last year was 39%, which is better than the share price return mentioned above. This is largely a result of its dividend payments!

A Different Perspective

Geumhwa Plant Service & Construction shareholders gained a total return of 39% during the year. But that return falls short of the market. The silver lining is that the gain was actually better than the average annual return of 0.4% per year over five year. It is possible that returns will improve along with the business fundamentals. Importantly, we haven't analysed Geumhwa Plant Service & Construction's dividend history. This free visual report on its dividends is a must-read if you're thinking of buying.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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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