Did You Miss YOUNGHWA TECH's (KOSDAQ:265560) Impressive 139% Share Price Gain?

Unfortunately, investing is risky - companies can and do go bankrupt. But when you pick a company that is really flourishing, you can make more than 100%. For example, the YOUNGHWA TECH Co., Ltd. (KOSDAQ:265560) share price has soared 139% return in just a single year. Also pleasing for shareholders was the 16% gain in the last three months. But this could be related to the strong market, which is up 29% in the last three months. Also impressive, the stock is up 34% over three years, making long term shareholders happy, too.

Check out our latest analysis for YOUNGHWA TECH

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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 YOUNGHWA TECH saw its earnings per share (EPS) drop below zero. While this may prove temporary, we'd consider it a negative, so we would not have expected to see the share price up. It may be that the company has done well on other metrics.

We are skeptical of the suggestion that the 0.2% dividend yield would entice buyers to the stock. Unfortunately YOUNGHWA TECH's fell 28% over twelve months. 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 image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

It's nice to see that YOUNGHWA TECH shareholders have gained 139% (in total) over the last year. That includes the value of the dividend. So this year's TSR was actually better than the three-year TSR (annualized) of 11%. These improved returns may hint at some real business momentum, implying that now could be a great time to delve deeper. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we've identified 3 warning signs for YOUNGHWA TECH (1 can't be ignored) that you should be aware of.

Of course YOUNGHWA TECH 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 KR 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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