The total return for Samsung BiologicsLtd (KRX:207940) investors has risen faster than earnings growth over the last five years

When you buy a stock there is always a possibility that it could drop 100%. But on a lighter note, a good company can see its share price rise well over 100%. For instance, the price of Samsung Biologics Co.,Ltd. (KRX:207940) stock is up an impressive 228% over the last five years. On top of that, the share price is up 18% in about a quarter.

Since the long term performance has been good but there's been a recent pullback of 3.0%, let's check if the fundamentals match the share price.

Check out our latest analysis for Samsung BiologicsLtd

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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).

Over half a decade, Samsung BiologicsLtd managed to grow its earnings per share at 29% a year. This EPS growth is reasonably close to the 27% average annual increase in the share price. This indicates that investor sentiment towards the company has not changed a great deal. Indeed, it would appear the share price is reacting to the EPS.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

We know that Samsung BiologicsLtd has improved its bottom line over the last three years, but what does the future have in store? You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

What About The Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Samsung BiologicsLtd's total shareholder return (TSR) and its share price return. 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. We note that Samsung BiologicsLtd's TSR, at 232% is higher than its share price return of 228%. 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

We're pleased to report that Samsung BiologicsLtd shareholders have received a total shareholder return of 21% over one year. Having said that, the five-year TSR of 27% a year, is even better. Before forming an opinion on Samsung BiologicsLtd you might want to consider these 3 valuation metrics.

Of course Samsung BiologicsLtd may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on South Korean exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.