Wooshin Systems (KRX:017370) stock performs better than its underlying earnings growth over last year

Unless you borrow money to invest, the potential losses are limited. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Wooshin Systems Co., Ltd. (KRX:017370) share price has soared 198% in the last 1 year. Most would be very happy with that, especially in just one year! It's even up 11% in the last week. Looking back further, the stock price is 68% higher than it was three years ago.

The past week has proven to be lucrative for Wooshin Systems investors, so let's see if fundamentals drove the company's one-year performance.

Check out our latest analysis for Wooshin Systems

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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).

Wooshin Systems was able to grow EPS by 179% in the last twelve months. This EPS growth is reasonably close to the 198% increase in the share price. So this implies that investor expectations of the company have remained pretty steady. We don't think its coincidental that the share price is growing at a similar rate to the earnings per share.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

We know that Wooshin Systems has improved its bottom line over the last three years, but what does the future have in store? 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 Wooshin Systems shareholders have received a total shareholder return of 199% over the last year. Of course, that includes the dividend. That gain is better than the annual TSR over five years, which is 8%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Wooshin Systems better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Wooshin Systems .

But note: Wooshin Systems 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 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.