How Much Did Jeju Air's(KRX:089590) Shareholders Earn From Share Price Movements Over The Last Five Years?

Jeju Air Co., Ltd. (KRX:089590) shareholders should be happy to see the share price up 26% in the last month. But over the last half decade, the stock has not performed well. After all, the share price is down 57% in that time, significantly under-performing the market.

View our latest analysis for Jeju Air

Jeju Air isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

Jeju Air is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. If you are thinking of buying or selling Jeju Air stock, you should check out this free report showing analyst consensus estimates for future profits.

What about the Total Shareholder Return (TSR)?

Investors should note that there's a difference between Jeju Air's total shareholder return (TSR) and its share price change, which we've covered above. 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. Its history of dividend payouts mean that Jeju Air's TSR, which was a 50% drop over the last 5 years, was not as bad as the share price return.

A Different Perspective

Investors in Jeju Air had a tough year, with a total loss of 27%, against a market gain of about 28%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 8% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand Jeju Air better, we need to consider many other factors. For example, we've discovered 1 warning sign for Jeju Air that you should be aware of before investing here.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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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