The Cheryong IndustrialLtd (KOSDAQ:147830) Share Price Has Gained 82% And Shareholders Are Hoping For More

Cheryong Industrial Co.,Ltd. (KOSDAQ:147830) shareholders might be concerned after seeing the share price drop 15% in the last month. But that doesn't change the fact that the returns over the last five years have been respectable. The share price is up 82%, which is better than the market return of 75%. Unfortunately not all shareholders will have held it for five years, so spare a thought for those caught in the 34% decline over the last three years: that's a long time to wait for profits.

See our latest analysis for Cheryong IndustrialLtd

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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 five years of share price growth, Cheryong IndustrialLtd achieved compound earnings per share (EPS) growth of 5.6% per year. This EPS growth is slower than the share price growth of 13% per year, over the same period. This suggests that market participants hold the company in higher regard, these days. That's not necessarily surprising considering the five-year track record of earnings growth.

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 Cheryong IndustrialLtd's key metrics by checking this interactive graph of Cheryong IndustrialLtd's earnings, revenue and cash flow.

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Cheryong IndustrialLtd's total shareholder return (TSR) and its share price return. Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. We note that Cheryong IndustrialLtd's TSR, at 96% is higher than its share price return of 82%. When you consider it hasn't been paying a dividend, this data suggests shareholders have benefitted from a spin-off, or had the opportunity to acquire attractively priced shares in a discounted capital raising.

A Different Perspective

Cheryong IndustrialLtd provided a TSR of 4.7% over the last twelve months. But that was short of the market average. If we look back over five years, the returns are even better, coming in at 14% per year for five years. It may well be that this is a business worth popping on the watching, given the continuing positive reception, over time, from the market. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. To that end, you should learn about the 3 warning signs we've spotted with Cheryong IndustrialLtd (including 1 which doesn't sit too well with us) .

We will like Cheryong IndustrialLtd better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider 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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