Stock Analysis

How Much Did HyosungONBCo.Ltd's(KOSDAQ:097870) Shareholders Earn From Share Price Movements Over The Last Five Years?

KOSDAQ:A097870
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HyosungONBCo.,Ltd (KOSDAQ:097870) shareholders should be happy to see the share price up 18% in the last quarter. But if you look at the last five years the returns have not been good. In fact, the share price is down 31%, which falls well short of the return you could get by buying an index fund.

See our latest analysis for HyosungONBCo.Ltd

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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).

Looking back five years, both HyosungONBCo.Ltd's share price and EPS declined; the latter at a rate of 22% per year. The share price decline of 7% per year isn't as bad as the EPS decline. So the market may previously have expected a drop, or else it expects the situation will improve.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

earnings-per-share-growth
KOSDAQ:A097870 Earnings Per Share Growth January 25th 2021

It might be well worthwhile taking a look at our free report on HyosungONBCo.Ltd's earnings, revenue and cash flow.

What about the Total Shareholder Return (TSR)?

We've already covered HyosungONBCo.Ltd's share price action, but we should also mention its total shareholder return (TSR). Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Its history of dividend payouts mean that HyosungONBCo.Ltd's TSR, which was a 27% drop over the last 5 years, was not as bad as the share price return.

A Different Perspective

HyosungONBCo.Ltd shareholders gained a total return of 31% during the year. But that was short of the market average. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 5% endured over half a decade. It could well be that the business is stabilizing. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For instance, we've identified 2 warning signs for HyosungONBCo.Ltd (1 is potentially serious) that you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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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