Stock Analysis

Dong Suh Companies (KRX:026960) Shareholders Booked A 66% Gain In The Last Year

KOSE:A026960
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These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But investors can boost returns by picking market-beating companies to own shares in. For example, the Dong Suh Companies Inc. (KRX:026960) share price is up 66% in the last year, clearly besting the market return of around 25% (not including dividends). That's a solid performance by our standards! Zooming out, the stock is actually down 3.4% in the last three years.

Check out our latest analysis for Dong Suh Companies

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 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 the last year Dong Suh Companies grew its earnings per share (EPS) by 14%. The share price gain of 66% certainly outpaced the EPS growth. 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).

earnings-per-share-growth
KOSE:A026960 Earnings Per Share Growth November 25th 2020

Dive deeper into Dong Suh Companies' key metrics by checking this interactive graph of Dong Suh Companies's earnings, revenue and cash flow.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). 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. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Dong Suh Companies' TSR for the last year was 72%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments!

A Different Perspective

It's nice to see that Dong Suh Companies shareholders have received a total shareholder return of 72% over the last year. That's including the dividend. There's no doubt those recent returns are much better than the TSR loss of 0.4% per year over five years. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. Is Dong Suh Companies cheap compared to other companies? These 3 valuation measures might help you decide.

But note: Dong Suh Companies may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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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Valuation is complex, but we're helping make it simple.

Find out whether Dong Suh Companies is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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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