e-Credible (KOSDAQ:092130) Has Gifted Shareholders With A Fantastic 183% Total Return On Their Investment

When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose your money. But on a lighter note, a good company can see its share price rise well over 100%. One great example is e-Credible Co., Ltd. (KOSDAQ:092130) which saw its share price drive 134% higher over five years.

See our latest analysis for e-Credible

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

During five years of share price growth, e-Credible achieved compound earnings per share (EPS) growth of 15% per year. This EPS growth is lower than the 19% average annual increase in the share price. This suggests that market participants hold the company in higher regard, these days. And that's hardly shocking given the track record of growth.

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

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

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, e-Credible's TSR for the last 5 years was 183%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments!

A Different Perspective

e-Credible shareholders are up 23% for the year (even including dividends). But that was short of the market average. The silver lining is that the gain was actually better than the average annual return of 23% per year over five year. This could indicate that the company is winning over new investors, as it pursues its strategy. Before forming an opinion on e-Credible you might want to consider the cold hard cash it pays as a dividend. This free chart tracks its dividend over time.

But note: e-Credible may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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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