Valuation Update With 7 Day Price Move • Jun 24
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to ₩13,590, the stock trades at a trailing P/E ratio of 12.6x. Average trailing P/E is 12x in the Chemicals industry in South Korea. Total loss to shareholders of 72% over the past three years. Valuation Update With 7 Day Price Move • Jun 02
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩21,150, the stock trades at a trailing P/E ratio of 19.6x. Average trailing P/E is 14x in the Chemicals industry in South Korea. Total loss to shareholders of 57% over the past three years. Valuation Update With 7 Day Price Move • May 12
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to ₩17,420, the stock trades at a trailing P/E ratio of 41.2x. Average trailing P/E is 16x in the Chemicals industry in South Korea. Total loss to shareholders of 63% over the past three years. Valuation Update With 7 Day Price Move • Mar 30
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩16,490, the stock trades at a trailing P/E ratio of 39x. Average trailing P/E is 14x in the Chemicals industry in South Korea. Total loss to shareholders of 72% over the past three years. Reported Earnings • Mar 20
Full year 2025 earnings released: EPS: ₩423 (vs ₩751 in FY 2024) Full year 2025 results: EPS: ₩423 (down from ₩751 in FY 2024). Revenue: ₩141.1b (up 3.8% from FY 2024). Net income: ₩2.02b (down 44% from FY 2024). Profit margin: 1.4% (down from 2.6% in FY 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 44 percentage points per year, which is a significant difference in performance. Valuation Update With 7 Day Price Move • Mar 04
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to ₩13,520, the stock trades at a trailing P/E ratio of 34.8x. Average trailing P/E is 13x in the Chemicals industry in South Korea. Total loss to shareholders of 77% over the past three years. Declared Dividend • Feb 07
Dividend of ₩200 announced Dividend of ₩200 is the same as last year. Ex-date: 26th March 2026 Payment date: 1st January 1970 Dividend yield will be 1.4%, which is lower than the industry average of 1.7%. Sustainability & Growth Dividend is covered by earnings (52% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has decreased over the past 56 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to decline by 43% to shift the payout ratio to a potentially unsustainable range, which is more than the 34% EPS decline seen over the last 5 years. Reported Earnings • Nov 14
Third quarter 2025 earnings released: EPS: ₩422 (vs ₩303 in 3Q 2024) Third quarter 2025 results: EPS: ₩422 (up from ₩303 in 3Q 2024). Revenue: ₩37.4b (up 14% from 3Q 2024). Net income: ₩2.02b (up 39% from 3Q 2024). Profit margin: 5.4% (up from 4.4% in 3Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 46 percentage points per year, which is a significant difference in performance. Valuation Update With 7 Day Price Move • Nov 06
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to ₩17,940, the stock trades at a trailing P/E ratio of 66.6x. Average trailing P/E is 13x in the Chemicals industry in South Korea. Total loss to shareholders of 69% over the past three years. Reported Earnings • Aug 19
Second quarter 2025 earnings released: ₩154 loss per share (vs ₩83.00 profit in 2Q 2024) Second quarter 2025 results: ₩154 loss per share (down from ₩83.00 profit in 2Q 2024). Revenue: ₩35.8b (down 4.7% from 2Q 2024). Net loss: ₩733.9m (down ₩861.8m from profit in 2Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 39 percentage points per year, which is a significant difference in performance. Reported Earnings • May 19
First quarter 2025 earnings released: ₩240 loss per share (vs ₩61.00 profit in 1Q 2024) First quarter 2025 results: ₩240 loss per share (down from ₩61.00 profit in 1Q 2024). Revenue: ₩31.1b (down 11% from 1Q 2024). Net loss: ₩1.15b (down 495% from profit in 1Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 25 percentage points per year, which is a significant difference in performance. Board Change • Apr 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 2 highly experienced directors. CEO & Director Kim Sang-Goo was the last director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Reported Earnings • Mar 13
Full year 2024 earnings released: EPS: ₩751 (vs ₩1,708 in FY 2023) Full year 2024 results: EPS: ₩751 (down from ₩1,708 in FY 2023). Revenue: ₩136.0b (down 6.8% from FY 2023). Net income: ₩3.58b (down 56% from FY 2023). Profit margin: 2.6% (down from 5.6% in FY 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 59% per year but the company’s share price has only fallen by 43% per year, which means it has not declined as severely as earnings. Annonce • Feb 19
Tapex Co., Ltd. announces Annual dividend Tapex Co., Ltd. announced Annual dividend of KRW 200.0000 per share, ex-date on March 20, 2025 and record date on March 21, 2025. Buy Or Sell Opportunity • Feb 05
Now 22% overvalued Over the last 90 days, the stock has fallen 20% to ₩12,650. The fair value is estimated to be ₩10,368, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 5.0% over the last 3 years. Earnings per share has declined by 50%. Annonce • Feb 04
Tapex Co., Ltd., Annual General Meeting, Mar 18, 2025 Tapex Co., Ltd., Annual General Meeting, Mar 18, 2025, at 09:00 Tokyo Standard Time. Location: conference room, 62-16, chorok-ro 532beon-gil, yanggam-myeon, gyeonggi-do, hwaseong South Korea Buy Or Sell Opportunity • Jan 03
Now 26% overvalued Over the last 90 days, the stock has fallen 26% to ₩13,260. The fair value is estimated to be ₩10,500, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 5.0% over the last 3 years. Earnings per share has declined by 50%. Buy Or Sell Opportunity • Dec 10
Now 23% overvalued Over the last 90 days, the stock has fallen 29% to ₩12,720. The fair value is estimated to be ₩10,353, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 5.0% over the last 3 years. Earnings per share has declined by 50%. Reported Earnings • Nov 12
Third quarter 2024 earnings released: EPS: ₩303 (vs ₩318 in 3Q 2023) Third quarter 2024 results: EPS: ₩303 (down from ₩318 in 3Q 2023). Revenue: ₩32.7b (down 8.5% from 3Q 2023). Net income: ₩1.45b (down 3.9% from 3Q 2023). Profit margin: 4.4% (up from 4.2% in 3Q 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 50% per year but the company’s share price has only fallen by 43% per year, which means it has not declined as severely as earnings. Reported Earnings • Aug 16
Second quarter 2024 earnings released: EPS: ₩83.00 (vs ₩669 in 2Q 2023) Second quarter 2024 results: EPS: ₩83.00 (down from ₩669 in 2Q 2023). Revenue: ₩37.6b (down 2.9% from 2Q 2023). Net income: ₩397.5m (down 87% from 2Q 2023). Profit margin: 1.1% (down from 8.2% in 2Q 2023). The decrease in margin was primarily driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 38% per year whereas the company’s share price has fallen by 35% per year. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to ₩16,880, the stock trades at a trailing P/E ratio of 13.1x. Average trailing P/E is 13x in the Chemicals industry in South Korea. Total loss to shareholders of 72% over the past three years. New Risk • Jun 05
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of South Korean stocks, typically moving 11% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (11% average weekly change). Minor Risk Profit margins are more than 30% lower than last year (4.2% net profit margin). Valuation Update With 7 Day Price Move • Jun 05
Investor sentiment improves as stock rises 27% After last week's 27% share price gain to ₩31,550, the stock trades at a trailing P/E ratio of 24.5x. Average trailing P/E is 14x in the Chemicals industry in South Korea. Total loss to shareholders of 37% over the past three years. New Risk • May 03
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of South Korean stocks, typically moving 9.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (20% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (9.1% average weekly change). Profit margins are more than 30% lower than last year (5.6% net profit margin). Market cap is less than US$100m (₩126.3b market cap, or US$92.4m). Valuation Update With 7 Day Price Move • May 02
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to ₩25,800, the stock trades at a trailing P/E ratio of 15.2x. Average trailing P/E is 15x in the Chemicals industry in South Korea. Total loss to shareholders of 54% over the past three years. Valuation Update With 7 Day Price Move • Mar 13
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to ₩26,800, the stock trades at a trailing P/E ratio of 15.8x. Average trailing P/E is 16x in the Chemicals industry in South Korea. Total loss to shareholders of 35% over the past three years. Reported Earnings • Mar 12
Full year 2023 earnings released: EPS: ₩1,708 (vs ₩4,013 in FY 2022) Full year 2023 results: EPS: ₩1,708 (down from ₩4,013 in FY 2022). Revenue: ₩145.8b (down 20% from FY 2022). Net income: ₩8.10b (down 57% from FY 2022). Profit margin: 5.6% (down from 10% in FY 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 14% per year and the company’s share price has also fallen by 14% per year. Upcoming Dividend • Dec 20
Upcoming dividend of ₩900 per share at 3.1% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 11 April 2024. Payout ratio is a comfortable 58% and this is well supported by cash flows. Trailing yield: 3.1%. Lower than top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (1.8%). Reported Earnings • Nov 15
Third quarter 2023 earnings released: EPS: ₩318 (vs ₩1,185 in 3Q 2022) Third quarter 2023 results: EPS: ₩318 (down from ₩1,185 in 3Q 2022). Revenue: ₩35.7b (down 21% from 3Q 2022). Net income: ₩1.51b (down 73% from 3Q 2022). Profit margin: 4.2% (down from 12% in 3Q 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 26% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Chemicals industry in South Korea. Over the last 3 years on average, earnings per share has fallen by 5% per year whereas the company’s share price has fallen by 3% per year. Valuation Update With 7 Day Price Move • Nov 03
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to ₩33,700, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 12x in the Chemicals industry in South Korea. Total returns to shareholders of 11% over the past three years. New Risk • Oct 26
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩131.5b (US$96.8m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (7.1% net profit margin). Market cap is less than US$100m (₩131.5b market cap, or US$96.8m). Valuation Update With 7 Day Price Move • Aug 09
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to ₩40,500, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 13x in the Chemicals industry in South Korea. Total returns to shareholders of 65% over the past three years. Major Estimate Revision • Apr 29
Consensus revenue estimates decrease by 16% The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from ₩229.9m to ₩192.2m. EPS estimate unchanged from ₩4,582 per share at last update. Chemicals industry in South Korea expected to see average net income growth of 31% next year. Consensus price target of ₩100,000 unchanged from last update. Share price fell 3.5% to ₩55,000 over the past week. Buying Opportunity • Apr 04
Now 21% undervalued Over the last 90 days, the stock is up 16%. The fair value is estimated to be ₩75,380, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 20% over the last 3 years. Earnings per share has grown by 29%. Revenue is forecast to grow by 61% in 2 years. Earnings is forecast to grow by 102% in the next 2 years. Buying Opportunity • Mar 10
Now 23% undervalued after recent price drop Over the last 90 days, the stock is down 1.2%. The fair value is estimated to be ₩75,253, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 20% over the last 3 years. Earnings per share has grown by 29%. Revenue is forecast to grow by 61% in 2 years. Earnings is forecast to grow by 102% in the next 2 years. Reported Earnings • Mar 09
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: ₩4,013 (up from ₩4,009 in FY 2021). Revenue: ₩182.3b (up 18% from FY 2021). Net income: ₩18.9b (flat on FY 2021). Profit margin: 10% (down from 12% in FY 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 6.0%. Earnings per share (EPS) also missed analyst estimates by 19%. Revenue is forecast to grow 23% p.a. on average during the next 2 years, compared to a 15% growth forecast for the Chemicals industry in South Korea. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has increased by 54% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Mar 06
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩63,200, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 10x in the Chemicals industry in South Korea. Total returns to shareholders of 261% over the past three years. Buying Opportunity • Jan 16
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 23%. The fair value is estimated to be ₩66,167, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 19% over the last 3 years. Earnings per share has grown by 37%. Revenue is forecast to grow by 48% in 2 years. Earnings is forecast to grow by 60% in the next 2 years. Upcoming Dividend • Dec 21
Upcoming dividend of ₩700 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 12 April 2023. Payout ratio is a comfortable 15% and this is well supported by cash flows. Trailing yield: 1.4%. Lower than top quartile of South Korean dividend payers (3.3%). Lower than average of industry peers (2.4%). Buying Opportunity • Dec 12
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 22%. The fair value is estimated to be ₩72,854, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 19% over the last 3 years. Earnings per share has grown by 37%. Revenue is forecast to grow by 48% in 2 years. Earnings is forecast to grow by 60% in the next 2 years. Buying Opportunity • Nov 17
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 23%. The fair value is estimated to be ₩79,792, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 19% over the last 3 years. Earnings per share has grown by 37%. Revenue is forecast to grow by 48% in 2 years. Earnings is forecast to grow by 59% in the next 2 years. Price Target Changed • Nov 16
Price target decreased to ₩100,000 Down from ₩110,000, the current price target is provided by 1 analyst. New target price is 55% above last closing price of ₩64,600. Stock is down 20% over the past year. The company is forecast to post earnings per share of ₩4,945 for next year compared to ₩4,009 last year. Reported Earnings • Nov 13
Third quarter 2022 earnings released Third quarter 2022 results: Revenue: ₩45.4b (up 11% from 3Q 2021). Net income: ₩5.59b (up 2.0% from 3Q 2021). Profit margin: 12% (down from 13% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 21% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Chemicals industry in South Korea. Buying Opportunity • Nov 07
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 24%. The fair value is estimated to be ₩75,747, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Earnings per share has grown by 41%. Revenue is forecast to grow by 43% in 2 years. Earnings is forecast to grow by 51% in the next 2 years. Reported Earnings • Mar 12
Full year 2021 earnings: EPS misses analyst expectations Full year 2021 results: EPS: ₩4,009 (up from ₩2,931 in FY 2020). Revenue: ₩154.9b (up 30% from FY 2020). Net income: ₩18.9b (up 37% from FY 2020). Profit margin: 12% (in line with FY 2020). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 100%. Over the next year, revenue is forecast to grow 37%, compared to a 22% growth forecast for the industry in South Korea. Over the last 3 years on average, earnings per share has increased by 47% per year but the company’s share price has increased by 57% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Dec 22
Upcoming dividend of ₩500 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 15 April 2022. Payout ratio is a comfortable 14% but the company is not cash flow positive. Trailing yield: 0.7%. Lower than top quartile of South Korean dividend payers (2.4%). Lower than average of industry peers (1.4%). Reported Earnings • Nov 13
Third quarter 2021 earnings released: EPS ₩1,162 (vs ₩938 in 3Q 2020) The company reported a solid third quarter result with improved earnings and revenues, although profit margins were flat. Third quarter 2021 results: Revenue: ₩40.9b (up 28% from 3Q 2020). Net income: ₩5.48b (up 24% from 3Q 2020). Profit margin: 13% (in line with 3Q 2020). Over the last 3 years on average, earnings per share has increased by 48% per year whereas the company’s share price has increased by 49% per year. Reported Earnings • Aug 12
Second quarter 2021 earnings released: EPS ₩1,041 (vs ₩1,038 in 2Q 2020) The company reported a mediocre second quarter result with weaker profit margins, although earnings were flat and revenues improved. Second quarter 2021 results: Revenue: ₩36.3b (up 30% from 2Q 2020). Net income: ₩4.91b (flat on 2Q 2020). Profit margin: 14% (down from 18% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has only increased by 38% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 11
Investor sentiment improved over the past week After last week's 16% share price gain to ₩69,400, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 11x in the Chemicals industry in South Korea. Total returns to shareholders of 155% over the past three years. Reported Earnings • May 12
First quarter 2021 earnings released: EPS ₩945 (vs ₩437 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: ₩33.3b (up 23% from 1Q 2020). Net income: ₩4.46b (up 116% from 1Q 2020). Profit margin: 13% (up from 7.6% in 1Q 2020). Over the last 3 years on average, earnings per share has increased by 38% per year but the company’s share price has only increased by 30% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 26
Investor sentiment improved over the past week After last week's 19% share price gain to ₩51,800, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 11x in the Chemicals industry in South Korea. Total returns to shareholders of 91% over the past three years. Reported Earnings • Mar 10
Full year 2020 earnings released: EPS ₩2,931 (vs ₩1,617 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: ₩118.8b (up 5.5% from FY 2019). Net income: ₩13.8b (up 81% from FY 2019). Profit margin: 12% (up from 6.8% in FY 2019). Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Annonce • Feb 04
Tapex Co., Ltd., Annual General Meeting, Mar 22, 2021 Tapex Co., Ltd., Annual General Meeting, Mar 22, 2021, at 09:00 Korea Standard Time. Valuation Update With 7 Day Price Move • Jan 20
Investor sentiment improved over the past week After last week's 16% share price gain to ₩42,650, the stock is trading at a trailing P/E ratio of 13.9x, up from the previous P/E ratio of 12x. This compares to an average P/E of 18x in the Chemicals industry in South Korea. Total returns to shareholders over the past three years are 51%. Is New 90 Day High Low • Jan 04
New 90-day high: ₩38,550 The company is up 25% from its price of ₩30,950 on 06 October 2020. The South Korean market is up 21% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 22% over the same period. Is New 90 Day High Low • Dec 16
New 90-day high: ₩37,700 The company is up 8.0% from its price of ₩34,800 on 17 September 2020. The South Korean market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is up 13% over the same period. Is New 90 Day High Low • Nov 30
New 90-day high: ₩36,900 The company is up 48% from its price of ₩25,000 on 01 September 2020. The South Korean market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 14% over the same period. Reported Earnings • Nov 14
Third quarter 2020 earnings released: EPS ₩938 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: ₩31.8b (up 5.3% from 3Q 2019). Net income: ₩4.43b (up 159% from 3Q 2019). Profit margin: 14% (up from 5.6% in 3Q 2019). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth.