Shareholders of Tokai Carbon Korea (KOSDAQ:064760) Must Be Delighted With Their 416% Total Return

Buying shares in the best businesses can build meaningful wealth for you and your family. While the best companies are hard to find, but they can generate massive returns over long periods. For example, the Tokai Carbon Korea Co., Ltd. (KOSDAQ:064760) share price is up a whopping 380% in the last half decade, a handsome return for long term holders. If that doesn't get you thinking about long term investing, we don't know what will. In more good news, the share price has risen 0.6% in thirty days. But the price may well have benefitted from a buoyant market, since stocks have gained 13% in the last thirty days.

View our latest analysis for Tokai Carbon Korea

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).

During five years of share price growth, Tokai Carbon Korea achieved compound earnings per share (EPS) growth of 45% per year. The EPS growth is more impressive than the yearly share price gain of 37% over the same period. So one could conclude that the broader market has become more cautious towards the stock.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

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

What about the Total Shareholder Return (TSR)?

We've already covered Tokai Carbon Korea's share price action, but we should also mention its total shareholder return (TSR). 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. Its history of dividend payouts mean that Tokai Carbon Korea's TSR of 416% over the last 5 years is better than the share price return.

A Different Perspective

It's good to see that Tokai Carbon Korea has rewarded shareholders with a total shareholder return of 88% in the last twelve months. That's better than the annualised return of 39% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. Is Tokai Carbon Korea cheap compared to other companies? These 3 valuation measures might help you decide.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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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