Samwha Electric: Long-term returns despite short-term declines

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Shares of Samwha ElectricLtd (KRX:009470) have fallen recently, despite an impressive rise over five years. Can future sales growth affect dividends?

Die Aktien von Samwha ElectricLtd (KRX:009470) sind in letzter Zeit gefallen, trotz eines beeindruckenden Anstiegs über fünf Jahre. Kann sich das zukünftige Umsatzwachstum auf die Dividenden auswirken?
Shares of Samwha ElectricLtd (KRX:009470) have fallen recently, despite an impressive rise over five years. Can future sales growth affect dividends?

Samwha Electric: Long-term returns despite short-term declines

The current developments at theSamwha Electric Co., Ltd.(KRX:009470) are of interest to investors as the share price has fallen 25% in the last four weeks. Still, it's worth keeping in mind that this doesn't hurt the company's overall returns over a five-year period. In fact, the share price is up an impressive 140% compared to where it was five years ago. This example shows that a short-term downward trend does not necessarily undermine a company's long-term prospects.

Last week the stock experienced a 16% decline, which might seem worrying. However, it is important to compare historical returns and fundamental company figures. Comparing annual earnings per share (EPS) to share price trends shows how investor sentiment has changed over time. Over the five-year growth period, Samwha ElectricLtd has achieved an annual EPS growth rate of 36% - this is more notable than the 19% annual share price gain over the same period.

Current dividends and total shareholder return

Another important aspect for investors is to consider the total shareholder return (TSR). While the share price return only reflects the change in the share price, the TSR also takes into account factors relevant to distributions, such as dividends that are reinvested and the benefits of possible capital increases or spin-offs. Samwha ElectricLtd's TSR over the last five years is 155%, which significantly exceeds the share price return. This discrepancy can primarily be attributed to the dividend payments.

Over the last twelve months, Samwha ElectricLtd shareholders have seen a total return, including the dividend, of 143%. This return exceeds the annual TSR of 21% achieved over the last five years, and suggests that sentiment towards the company has been positive recently. This development could indicate strong business momentum and leaves room for deeper analysis to gain an accurate view of future developments.

Although market influences can certainly shape stock prices in the short term, there are also other key factors that should be considered. So there are, according to analysts1 Warning Sign for Samwha ElectricLtd, which could be important for investors.

Overall, the return development shows both investors and market observers that Samwha ElectricLtd is able to convince through strategic decisions and dividend policy. To find out more about the long-term trends and prospects for the company, take a look at the comprehensive analyses, which are provided by simplywall.st.