Update: HYUNDAI BIOLANDLtd (KOSDAQ:052260) Stock Gained 14% In The Last Five Years

If you buy and hold a stock for many years, you'd hope to be making a profit. But more than that, you probably want to see it rise more than the market average. But HYUNDAI BIOLAND Co.,Ltd (KOSDAQ:052260) has fallen short of that second goal, with a share price rise of 14% over five years, which is below the market return. Over the last twelve months the stock price has risen a very respectable 8.1%.

View our latest analysis for HYUNDAI BIOLANDLtd

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).

HYUNDAI BIOLANDLtd's earnings per share are down 12% per year, despite strong share price performance over five years.

The strong decline in earnings per share suggests the market isn't using EPS to judge the company. Given that EPS is down, but the share price is up, it seems clear the market is focussed on other aspects of the business, at the moment.

The modest 1.4% dividend yield is unlikely to be propping up the share price. In contrast revenue growth of 3.5% per year is probably viewed as evidence that HYUNDAI BIOLANDLtd is growing, a real positive. It's quite possible that management are prioritizing revenue growth over EPS growth at the moment.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

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 incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, HYUNDAI BIOLANDLtd's TSR for the last 5 years was 22%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

HYUNDAI BIOLANDLtd shareholders gained a total return of 8.5% during the year. But that return falls short of the market. The silver lining is that the gain was actually better than the average annual return of 4% per year over five year. This suggests the company might be improving over time. It's always interesting to track share price performance over the longer term. But to understand HYUNDAI BIOLANDLtd better, we need to consider many other factors. Even so, be aware that HYUNDAI BIOLANDLtd is showing 3 warning signs in our investment analysis , and 1 of those is potentially serious...

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 KR exchanges.

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