How Much Did EBEST Investment & Securities'(KOSDAQ:078020) Shareholders Earn From Share Price Movements Over The Last Three Years?

EBEST Investment & Securities Co., Ltd. (KOSDAQ:078020) shareholders should be happy to see the share price up 24% in the last quarter. But that cannot eclipse the less-than-impressive returns over the last three years. In fact, the share price is down 35% in the last three years, falling well short of the market return.

Check out our latest analysis for EBEST Investment & Securities

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.

During the unfortunate three years of share price decline, EBEST Investment & Securities actually saw its earnings per share (EPS) improve by 21% per year. This is quite a puzzle, and suggests there might be something temporarily buoying the share price. Or else the company was over-hyped in the past, and so its growth has disappointed.

Since the change in EPS doesn't seem to correlate with the change in share price, it's worth taking a look at other metrics.

Given the healthiness of the dividend payments, we doubt that they've concerned the market. It's good to see that EBEST Investment & Securities has increased its revenue over the last three years. If the company can keep growing revenue, there may be an opportunity for investors. You might have to dig deeper to understand the recent share price weakness.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

We know that EBEST Investment & Securities has improved its bottom line lately, but what does the future have in store? This free report showing analyst forecasts should help you form a view on EBEST Investment & Securities

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. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for EBEST Investment & Securities the TSR over the last 3 years was -24%, 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

EBEST Investment & Securities shareholders gained a total return of 26% during the year. But that return falls short of the market. But at least that's still a gain! Over five years the TSR has been a reduction of 1.5% per year, over five years. It could well be that the business is stabilizing. It's always interesting to track share price performance over the longer term. But to understand EBEST Investment & Securities better, we need to consider many other factors. For instance, we've identified 4 warning signs for EBEST Investment & Securities (2 can't be ignored) that you should be aware of.

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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