Recent 12% pullback isn't enough to hurt long-term Kbi Metal (KOSDAQ:024840) shareholders, they're still up 118% over 1 year

It's been a soft week for Kbi Metal Co., Ltd. (KOSDAQ:024840) shares, which are down 12%. But that doesn't change the fact that the returns over the last year have been very strong. Like an eagle, the share price soared 118% in that time. So we think most shareholders won't be too upset about the recent fall. More important, going forward, is how the business itself is going.

In light of the stock dropping 12% 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 one-year return.

See our latest analysis for Kbi Metal

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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).

Kbi Metal went from making a loss to reporting a profit, in the last year.

The result looks like a strong improvement to us, so we're not surprised the market likes the growth. Generally speaking the profitability inflection point is a great time to research a company closely, lest you miss an opportunity to profit.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

Dive deeper into Kbi Metal's key metrics by checking this interactive graph of Kbi Metal's earnings, revenue and cash flow.

A Different Perspective

It's nice to see that Kbi Metal shareholders have received a total shareholder return of 118% over the last year. That's better than the annualised return of 12% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 4 warning signs for Kbi Metal (2 are concerning!) that you should be aware of before investing here.

Of course Kbi Metal 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.

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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.