HANDSOME (KRX:020000) Shareholders Booked A 48% Gain In The Last Year

A diverse portfolio of stocks will always have winners and losers. But if you're going to beat the market overall, you need to have individual stocks that outperform. HANDSOME Corp. (KRX:020000) has done well over the last year, with the stock price up 48% beating the market return of 44% (not including dividends). Also impressive, the stock is up 32% over three years, making long term shareholders happy, too.

View our latest analysis for HANDSOME

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...' One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

HANDSOME was able to grow EPS by 6.3% in the last twelve months. This EPS growth is significantly lower than the 48% 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 HANDSOME's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

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 incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of HANDSOME, it has a TSR of 50% for the last year. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

HANDSOME's TSR for the year was broadly in line with the market average, at 50%. Most would be happy with a gain, and it helps that the year's return is actually better than the average return over five years, which was 0.4%. It is possible that management foresight will bring growth well into the future, even if the share price slows down. Is HANDSOME cheap compared to other companies? These 3 valuation measures might help you decide.

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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