Can You Imagine How Jubilant Intelligent Digital Integrated Security's (KOSDAQ:143160) Shareholders Feel About Its 251% Share Price Gain?

It might be of some concern to shareholders to see the Intelligent Digital Integrated Security Co., Ltd. (KOSDAQ:143160) share price down 12% in the last month. But in three years the returns have been great. In fact, the share price is up a full 251% compared to three years ago. It's not uncommon to see a share price retrace a bit, after a big gain. If the business can perform well for years to come, then the recent drop could be an opportunity.

Check out our latest analysis for Intelligent Digital Integrated Security

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Intelligent Digital Integrated Security was able to grow its EPS at 11% per year over three years, sending the share price higher. This EPS growth is lower than the 52% average annual increase in the share price. This suggests that, as the business progressed over the last few years, it gained the confidence of market participants. It's not unusual to see the market 're-rate' a stock, after a few years of growth.

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

It might be well worthwhile taking a look at our free report on Intelligent Digital Integrated Security's earnings, revenue and cash flow.

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. 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. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Intelligent Digital Integrated Security's TSR for the last 3 years was 259%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments!

A Different Perspective

Intelligent Digital Integrated Security provided a TSR of 8.4% over the last twelve months. But that return falls short of the market. If we look back over five years, the returns are even better, coming in at 8% per year for five years. It may well be that this is a business worth popping on the watching, given the continuing positive reception, over time, from the market. 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. Even so, be aware that Intelligent Digital Integrated Security is showing 3 warning signs in our investment analysis , and 1 of those doesn't sit too well with us...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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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