Introducing BroadBand Security (TYO:4398), A Stock That Climbed 41% In The Last Year

It might be of some concern to shareholders to see the BroadBand Security, Inc. (TYO:4398) share price down 18% in the last month. While that might be a setback, it doesn't negate the nice returns received over the last twelve months. To wit, it had solidly beat the market, up 41%.

Check out our latest analysis for BroadBand Security

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 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.

During the last year BroadBand Security grew its earnings per share (EPS) by 83%. This EPS growth is significantly higher than the 41% increase in the share price. Therefore, it seems the market isn't as excited about BroadBand Security as it was before. This could be an opportunity.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

This free interactive report on BroadBand Security's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

BroadBand Security boasts a total shareholder return of 42% for the last year. Unfortunately the share price is down 15% over the last quarter. It may simply be that the share price got ahead of itself, although there may have been fundamental developments that are weighing on it. It's always interesting to track share price performance over the longer term. But to understand BroadBand Security better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with BroadBand Security , and understanding them should be part of your investment process.

Of course BroadBand Security 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 JP 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.
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