If You Had Bought Hanjin Heavy Industries & Construction Holdings (KRX:003480) Shares A Year Ago You'd Have Earned 58% Returns

The simplest way to invest in stocks is to buy exchange traded funds. But if you pick the right individual stocks, you could make more than that. For example, the Hanjin Heavy Industries & Construction Holdings Co., Ltd. (KRX:003480) share price is up 58% in the last year, clearly besting the market return of around 29% (not including dividends). So that should have shareholders smiling. However, the longer term returns haven't been so impressive, with the stock up just 7.2% in the last three years.

View our latest analysis for Hanjin Heavy Industries & Construction Holdings

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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.

During the last year Hanjin Heavy Industries & Construction Holdings grew its earnings per share, moving from a loss to a profit.

When a company is just on the edge of profitability it can be well worth considering other metrics in order to more precisely gauge growth (and therefore understand share price movements).

Unfortunately Hanjin Heavy Industries & Construction Holdings' fell 7.8% over twelve months. So using a snapshot of key business metrics doesn't give us a good picture of why the market is bidding up the stock.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

Take a more thorough look at Hanjin Heavy Industries & Construction Holdings' financial health with this free report on its balance sheet.

A Different Perspective

It's good to see that Hanjin Heavy Industries & Construction Holdings has rewarded shareholders with a total shareholder return of 58% in the last twelve months. There's no doubt those recent returns are much better than the TSR loss of 5% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand Hanjin Heavy Industries & Construction Holdings better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Hanjin Heavy Industries & Construction Holdings (of which 1 doesn't sit too well with us!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will 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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