If You Had Bought Samyang Packaging (KRX:272550) Stock A Year Ago, You Could Pocket A 34% Gain Today

A diverse portfolio of stocks will always have winners and losers. But if you're going to beat the market overall, you need to have individual stocks that outperform. One such company is Samyang Packaging Corporation (KRX:272550), which saw its share price increase 34% in the last year, slightly above the market return of around 29% (not including dividends). The longer term returns have not been as good, with the stock price only 4.7% higher than it was three years ago.

Check out our latest analysis for Samyang Packaging

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Samyang Packaging was able to grow EPS by 50% in the last twelve months. This EPS growth is significantly higher than the 34% increase in the share price. So it seems like the market has cooled on Samyang Packaging, despite the growth. Interesting. The caution is also evident in the lowish P/E ratio of 7.41.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

This free interactive report on Samyang Packaging's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Samyang Packaging's total shareholder return (TSR) and its share price return. 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. We note that Samyang Packaging's TSR, at 40% is higher than its share price return of 34%. When you consider it hasn't been paying a dividend, this data suggests shareholders have benefitted from a spin-off, or had the opportunity to acquire attractively priced shares in a discounted capital raising.

A Different Perspective

Pleasingly, Samyang Packaging's total shareholder return last year was 40%. That's better than the annualized TSR of 4% over the last three years. These improved returns may hint at some real business momentum, implying that now could be a great time to delve deeper. 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. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Samyang Packaging you should know about.

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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