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    PSK HOLDINGS' (KOSDAQ:031980) three-year total shareholder returns outpace the underlying earnings growth

    Simply Wall St·12/16/2025 22:46:31
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    It might be of some concern to shareholders to see the PSK HOLDINGS Inc. (KOSDAQ:031980) share price down 16% in the last month. But over the last three years the stock has shone bright like a diamond. In fact, the share price has taken off in that time, up 460%. Arguably, the recent fall is to be expected after such a strong rise. The only way to form a view of whether the current price is justified is to consider the merits of the business itself.

    In light of the stock dropping 8.8% in the past week, we want to investigate the longer term story, and see if fundamentals have been the driver of the company's positive three-year return.

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    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).

    PSK HOLDINGS was able to grow its EPS at 46% per year over three years, sending the share price higher. This EPS growth is lower than the 78% average annual increase in the share price. This suggests that, as the business progressed over the last few years, it gained the confidence of market participants. It is quite common to see investors become enamoured with a business, after a few years of solid progress.

    You can see below how EPS has changed over time (discover the exact values by clicking on the image).

    earnings-per-share-growth
    KOSDAQ:A031980 Earnings Per Share Growth December 16th 2025

    We know that PSK HOLDINGS has improved its bottom line over the last three years, but what does the future have in store? Take a more thorough look at PSK HOLDINGS' financial health with this free report on its balance sheet.

    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 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. We note that for PSK HOLDINGS the TSR over the last 3 years was 528%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return.

    A Different Perspective

    PSK HOLDINGS shareholders gained a total return of 27% during the year. Unfortunately this falls short of the market return. On the bright side, the longer term returns (running at about 43% a year, over half a decade) look better. It's quite possible the business continues to execute with prowess, even as the share price gains are slowing. It's always interesting to track share price performance over the longer term. But to understand PSK HOLDINGS better, we need to consider many other factors. For example, we've discovered 4 warning signs for PSK HOLDINGS (1 is a bit unpleasant!) that you should be aware of before investing here.

    Of course PSK HOLDINGS may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

    Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on South Korean exchanges.