The five-year decline in earnings might be taking its toll on Hanwha Investment & Securities (KRX:003530) shareholders as stock falls 11% over the past week

Hanwha Investment & Securities Co., Ltd. (KRX:003530) shareholders have seen the share price descend 12% over the month. But that doesn't change the fact that the returns over the last five years have been respectable. After all, the stock has performed better than the market (40%) in that time, and is up 42%. Unfortunately not all shareholders will have held it for five years, so spare a thought for those caught in the 35% decline over the last three years: that's a long time to wait for profits.

In light of the stock dropping 11% in the past week, we want to investigate the longer term story, and see if fundamentals have been the driver of the company's positive five-year return.

Check out our latest analysis for Hanwha Investment & Securities

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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 last half decade, Hanwha Investment & Securities became profitable. That would generally be considered a positive, so we'd hope to see the share price to rise.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

It might be well worthwhile taking a look at our free report on Hanwha Investment & Securities' earnings, revenue and cash flow.

What About The Total Shareholder Return (TSR)?

Investors should note that there's a difference between Hanwha Investment & Securities' total shareholder return (TSR) and its share price change, which we've covered above. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Dividends have been really beneficial for Hanwha Investment & Securities shareholders, and that cash payout contributed to why its TSR of 47%, over the last 5 years, is better than the share price return.

A Different Perspective

It's nice to see that Hanwha Investment & Securities shareholders have received a total shareholder return of 18% over the last year. That's better than the annualised return of 8% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Hanwha Investment & Securities better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Hanwha Investment & Securities you should be aware of, and 1 of them doesn't sit too well with us.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on South Korean exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.