How Much Have SeAH Steel Holdings (KRX:003030) Shareholders Earned On Their Investment Over The Last Three Years?

One of the frustrations of investing is when a stock goes down. But it's hard to avoid some disappointing investments when the overall market is down. While the SeAH Steel Holdings Corporation (KRX:003030) share price is down 55% in the last three years, the total return to shareholders (which includes dividends) was 52%. And that total return actually beats the market return of 39%. There was little comfort for shareholders in the last week as the price declined a further 2.4%.

View our latest analysis for SeAH Steel Holdings

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...' 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).

SeAH Steel Holdings saw its share price decline over the three years in which its EPS also dropped, falling to a loss. This was, in part, due to extraordinary items impacting earnings. Due to the loss, it's not easy to use EPS as a reliable guide to the business. However, we can say we'd expect to see a falling share price in this scenario.

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

Dive deeper into SeAH Steel Holdings' key metrics by checking this interactive graph of SeAH Steel Holdings's earnings, revenue and cash flow.

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 is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for SeAH Steel Holdings the TSR over the last 3 years was 52%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence!

A Different Perspective

SeAH Steel Holdings shareholders are up 15% for the year (even including dividends). But that was short of the market average. If we look back over five years, the returns are even better, coming in at 25% per year for five years. It may well be that this is a business worth popping on the watching, given the continuing positive reception, over time, from the market. It's always interesting to track share price performance over the longer term. But to understand SeAH Steel Holdings better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for SeAH Steel Holdings you should be aware of, and 2 of them don't sit too well with us.

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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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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