COSMOS Pharmaceutical (TSE:3349) shareholders YoY returns are lagging the company's 27% one-year earnings growth

COSMOS Pharmaceutical Corporation (TSE:3349) shareholders might be concerned after seeing the share price drop 11% in the last quarter. Taking a longer term view we see the stock is up over one year. In that time, it is up 13%, which isn't bad, but is below the market return of 19%.

Although COSMOS Pharmaceutical has shed JP¥27b from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.

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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 imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

During the last year COSMOS Pharmaceutical grew its earnings per share (EPS) by 27%. It's fair to say that the share price gain of 13% did not keep pace with the EPS growth. So it seems like the market has cooled on COSMOS Pharmaceutical, despite the growth. Interesting.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

We know that COSMOS Pharmaceutical has improved its bottom line lately, but is it going to grow revenue? If you're interested, you could check this free report showing consensus revenue forecasts.

A Different Perspective

COSMOS Pharmaceutical shareholders gained a total return of 14% during the year. Unfortunately this falls short of the market return. But at least that's still a gain! Over five years the TSR has been a reduction of 0.5% per year, over five years. So this might be a sign the business has turned its fortunes around. Before deciding if you like the current share price, check how COSMOS Pharmaceutical scores on these 3 valuation metrics.

But note: COSMOS Pharmaceutical 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 Japanese exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.