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    The three-year decline in earnings might be taking its toll on Hanjin Kal (KRX:180640) shareholders as stock falls 15% over the past week

    Simply Wall St·12/21/2025 23:38:58
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    It's been a soft week for Hanjin Kal (KRX:180640) shares, which are down 15%. But that doesn't change the fact that the returns over the last three years have been very strong. The share price marched upwards over that time, and is now 189% higher than it was. It's not uncommon to see a share price retrace a bit, after a big gain. If the business can perform well for years to come, then the recent drop could be an opportunity.

    Since the long term performance has been good but there's been a recent pullback of 15%, let's check if the fundamentals match the share price.

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    To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

    Over the last three years, Hanjin Kal failed to grow earnings per share, which fell 30% (annualized).

    So we doubt that the market is looking to EPS for its main judge of the company's value. Since the change in EPS doesn't seem to correlate with the change in share price, it's worth taking a look at other metrics.

    The modest 0.3% dividend yield is unlikely to be propping up the share price. It may well be that Hanjin Kal revenue growth rate of 13% over three years has convinced shareholders to believe in a brighter future. In that case, the company may be sacrificing current earnings per share to drive growth, and maybe shareholder's faith in better days ahead will be rewarded.

    You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

    earnings-and-revenue-growth
    KOSE:A180640 Earnings and Revenue Growth December 21st 2025

    You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

    What About Dividends?

    When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Hanjin Kal, it has a TSR of 193% for the last 3 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return.

    A Different Perspective

    Hanjin Kal shareholders gained a total return of 55% during the year. But that was short of the market average. On the bright side, that's still a gain, and it's actually better than the average return of 14% over half a decade This suggests the company might be improving over time. It's always interesting to track share price performance over the longer term. But to understand Hanjin Kal better, we need to consider many other factors. Take risks, for example - Hanjin Kal has 3 warning signs we think you should be aware of.

    But note: Hanjin Kal 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 South Korean exchanges.