If You Had Bought DeviceENG.CO.Ltd (KOSDAQ:187870) Stock Three Years Ago, You Could Pocket A 235% Gain Today

DeviceENG.CO.,Ltd (KOSDAQ:187870) shareholders have seen the share price descend 19% over the month. But that doesn't change the fact that the returns over the last three years have been very strong. Indeed, the share price is up a very strong 235% in that time. To some, the recent share price pullback wouldn't be surprising after such a good run. If the business can perform well for years to come, then the recent drop could be an opportunity.

View our latest analysis for DeviceENG.CO.Ltd

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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.

During three years of share price growth, DeviceENG.CO.Ltd achieved compound earnings per share growth of 62% per year. The average annual share price increase of 50% is actually lower than the EPS growth. So one could reasonably conclude that the market has cooled on the stock. This cautious sentiment is reflected in its (fairly low) P/E ratio of 8.30.

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

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

What about the Total Shareholder Return (TSR)?

Investors should note that there's a difference between DeviceENG.CO.Ltd'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. DeviceENG.CO.Ltd hasn't been paying dividends, but its TSR of 248% exceeds its share price return of 235%, implying it has either spun-off a business, or raised capital at a discount; thereby providing additional value to shareholders.

A Different Perspective

We're pleased to report that DeviceENG.CO.Ltd rewarded shareholders with a total shareholder return of 228% over the last year. So this year's TSR was actually better than the three-year TSR (annualized) of 52%. Given the track record of solid returns over varying time frames, it might be worth putting DeviceENG.CO.Ltd on your watchlist. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we've discovered 1 warning sign for DeviceENG.CO.Ltd that you should be aware of before investing here.

Of course DeviceENG.CO.Ltd 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 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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