Can You Imagine How SeAH Steel's (KRX:306200) Shareholders Feel About The 80% Share Price Increase?

These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). For example, the SeAH Steel Corporation (KRX:306200) share price is up 80% in the last year, clearly besting the market return of around 42% (not including dividends). So that should have shareholders smiling. We'll need to follow SeAH Steel for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.

View our latest analysis for SeAH Steel

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

SeAH Steel was able to grow EPS by 36% in the last twelve months. The share price gain of 80% certainly outpaced the EPS growth. So it's fair to assume the market has a higher opinion of the business than it a year ago.

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

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

What about the Total Shareholder Return (TSR)?

Investors should note that there's a difference between SeAH Steel's total shareholder return (TSR) and its share price change, which we've covered above. 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. SeAH Steel hasn't been paying dividends, but its TSR of 84% exceeds its share price return of 80%, implying it has either spun-off a business, or raised capital at a discount; thereby providing additional value to shareholders.

A Different Perspective

SeAH Steel boasts a total shareholder return of 84% for the last year. That's better than the more recent three month gain of 3.0%, implying that share price has plateaued recently. It seems likely the market is waiting on fundamental developments with the business before pushing the share price higher (or lower). Before forming an opinion on SeAH Steel you might want to consider these 3 valuation metrics.

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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