HAESUNG DS (KRX:195870) Shareholders Have Enjoyed A 40% Share Price Gain

Passive investing in index funds can generate returns that roughly match the overall market. But you can significantly boost your returns by picking above-average stocks. For example, the HAESUNG DS Co., Ltd. (KRX:195870) share price is up 40% in the last year, clearly besting the market return of around 29% (not including dividends). So that should have shareholders smiling. Having said that, the longer term returns aren't so impressive, with stock gaining just 11% in three years.

See our latest analysis for HAESUNG DS

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.

HAESUNG DS was able to grow EPS by 96% in the last twelve months. This EPS growth is significantly higher than the 40% increase in the share price. So it seems like the market has cooled on HAESUNG DS, despite the growth. Interesting. The caution is also evident in the lowish P/E ratio of 9.98.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

We know that HAESUNG DS has improved its bottom line lately, but is it going to grow revenue? This free report showing analyst revenue forecasts should help you figure out if the EPS growth can be sustained.

What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. 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. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, HAESUNG DS' TSR for the last year was 44%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence!

A Different Perspective

We're pleased to report that HAESUNG DS rewarded shareholders with a total shareholder return of 44% over the last year. And yes, that does include the dividend. That gain actually surpasses the 6% TSR it generated (per year) over 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. For example, we've discovered 1 warning sign for HAESUNG DS that you should be aware of before investing here.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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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