Stock Analysis

If You Had Bought Woory Industrial HoldingsLtd (KOSDAQ:072470) Shares A Year Ago You'd Have Earned 58% Returns

KOSDAQ:A072470
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These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). For example, the Woory Industrial Holdings Co.,Ltd. (KOSDAQ:072470) share price is up 58% in the last year, clearly besting the market return of around 43% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! On the other hand, longer term shareholders have had a tougher run, with the stock falling 14% in three years.

See our latest analysis for Woory Industrial HoldingsLtd

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Over the last twelve months Woory Industrial HoldingsLtd went from profitable to unprofitable. While this may prove temporary, we'd consider it a negative, so we would not have expected to see the share price up. We might get a clue to explain the share price move by looking to other metrics.

We doubt the modest 0.4% dividend yield is doing much to support the share price. Woory Industrial HoldingsLtd's revenue actually dropped 10% over last year. So using a snapshot of key business metrics doesn't give us a good picture of why the market is bidding up the stock.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

earnings-and-revenue-growth
KOSDAQ:A072470 Earnings and Revenue Growth January 15th 2021

If you are thinking of buying or selling Woory Industrial HoldingsLtd stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's nice to see that Woory Industrial HoldingsLtd shareholders have received a total shareholder return of 59% over the last year. That's including the dividend. Notably the five-year annualised TSR loss of 7% per year compares very unfavourably with the recent share price performance. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand Woory Industrial HoldingsLtd better, we need to consider many other factors. For instance, we've identified 2 warning signs for Woory Industrial HoldingsLtd that you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on KR exchanges.

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Valuation is complex, but we're here to simplify it.

Discover if Woory Industrial HoldingsLtd might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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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