SPG Stock – Did You Miss SPG's (KOSDAQ:058610) 90% Share price Gain?

The simplest way to invest in stocks is to buy exchange traded funds. But you can significantly boost your returns by picking above-average stocks. To wit, the SPG Co., Ltd. (KOSDAQ:058610) share price is 90% higher than it was a year ago, much better than the market return of around 68% (not including dividends) in the same period. That’s a solid performance by our standards! In contrast, the longer term returns are negative, since the share price is 17% lower than it was three years ago.

View our latest analysis for SPG

To quote Buffett, ‘Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace…’ 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).

SPG was able to grow EPS by 81% in the last twelve months. This EPS growth is reasonably close to the 90% increase in the share price. This makes us think the market hasn’t really changed its sentiment around the company, in the last year. We don’t think its coincidental that the share price is growing at a similar rate to the earnings per share.

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

Dive deeper into SPG‘s key metrics by checking this interactive graph of SPG‘s earnings, revenue and cash flow.

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It’s fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of SPG, it has a TSR of 94% for the last year. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return.

It’s nice to see that SPG shareholders have received a total shareholder return of 94% over the last year. Of course, that includes the dividend. That gain is better than the annual TSR over five years, which is 13%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It’s always interesting to track share price performance over the longer term. But to understand SPG better, we need to consider many other factors. For instance, we’ve identified 2 warning signs for SPG (1 is potentially serious) that you should be aware of.

But note: SPG may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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. *Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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