Introducing Shin Heung Energy & ElectronicsLtd (KOSDAQ:243840), A Stock That Climbed 82% In The Last Three Years

One simple way to benefit from the stock market is to buy an index fund. But if you pick the right individual stocks, you could make more than that. For example, Shin Heung Energy & Electronics Co.,Ltd. (KOSDAQ:243840) shareholders have seen the share price rise 82% over three years, well in excess of the market return (6.3%, not including dividends). On the other hand, the returns haven't been quite so good recently, with shareholders up just 25% , including dividends .

Check out our latest analysis for Shin Heung Energy & ElectronicsLtd

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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.

Shin Heung Energy & ElectronicsLtd was able to grow its EPS at 47% per year over three years, sending the share price higher. This EPS growth is higher than the 22% average annual increase in the share price. So it seems investors have become more cautious about the company, over time.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

We know that Shin Heung Energy & ElectronicsLtd has improved its bottom line over the last three years, but what does the future have in store? You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. 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. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for Shin Heung Energy & ElectronicsLtd the TSR over the last 3 years was 85%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

Shin Heung Energy & ElectronicsLtd shareholders are up 25% for the year (even including dividends). It's always nice to make money but this return falls short of the market return which was about 32% for the year. On the other hand, the TSR over three years was worse, at just 23% per year. This suggests the company's position is improving. If the share price is up as a result of improved business performance, then this kind of improvement may be sustained. It's always interesting to track share price performance over the longer term. But to understand Shin Heung Energy & ElectronicsLtd better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Shin Heung Energy & ElectronicsLtd (including 1 which is is a bit unpleasant) .

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will 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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