The Dong Yang Steel Pipe (KRX:008970) Share Price Is Up 26% And Shareholders Are Holding On

By buying an index fund, investors can approximate the average market return. But if you buy good businesses at attractive prices, your portfolio returns could exceed the average market return. Just take a look at Dong Yang Steel Pipe Co., Ltd. (KRX:008970), which is up 26%, over three years, soundly beating the market return of 21% (not including dividends). On the other hand, the returns haven't been quite so good recently, with shareholders up just 10.0%.

See our latest analysis for Dong Yang Steel Pipe

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).

Dong Yang Steel Pipe became profitable within the last three years. So we would expect a higher share price over the period.

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

It might be well worthwhile taking a look at our free report on Dong Yang Steel Pipe's earnings, revenue and cash flow.

What about the Total Shareholder Return (TSR)?

We've already covered Dong Yang Steel Pipe's share price action, but we should also mention its total shareholder return (TSR). 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 Dong Yang Steel Pipe shareholders, and that cash payout contributed to why its TSR of 41%, over the last 3 years, is better than the share price return.

A Different Perspective

Dong Yang Steel Pipe shareholders gained a total return of 10.0% during the year. Unfortunately this falls short of the market return. The silver lining is that the gain was actually better than the average annual return of 1.3% per year over five year. It is possible that returns will improve along with the business fundamentals. Before forming an opinion on Dong Yang Steel Pipe you might want to consider these 3 valuation metrics.

We will like Dong Yang Steel Pipe better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider 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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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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