Investors Who Bought SAMWHA CAPACITORLTD (KRX:001820) Shares Five Years Ago Are Now Up 568%

Long term investing can be life changing when you buy and hold the truly great businesses. And highest quality companies can see their share prices grow by huge amounts. Just think about the savvy investors who held SAMWHA CAPACITOR Co.,LTD (KRX:001820) shares for the last five years, while they gained 568%. And this is just one example of the epic gains achieved by some long term investors. Also pleasing for shareholders was the 53% gain in the last three months. But this could be related to the strong market, which is up 33% in the last three months.

We love happy stories like this one. The company should be really proud of that performance!

Check out our latest analysis for SAMWHA CAPACITORLTD

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 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).

Over half a decade, SAMWHA CAPACITORLTD managed to grow its earnings per share at 67% a year. The EPS growth is more impressive than the yearly share price gain of 46% over the same period. So it seems the market isn't so enthusiastic about the stock these days.

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

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

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. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, SAMWHA CAPACITORLTD's TSR for the last 5 years was 584%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments!

A Different Perspective

SAMWHA CAPACITORLTD shareholders gained a total return of 28% during the year. But that return falls short of the market. It's probably a good sign that the company has an even better long term track record, having provided shareholders with an annual TSR of 47% over 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. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for SAMWHA CAPACITORLTD you should know about.

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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