Wooshin Systems'(KRX:017370) Share Price Is Down 58% Over The Past Three Years.

While it may not be enough for some shareholders, we think it is good to see the Wooshin Systems Co., Ltd. (KRX:017370) share price up 16% in a single quarter. But that is small recompense for the exasperating returns over three years. In that time, the share price dropped 58%. Some might say the recent bounce is to be expected after such a bad drop. Perhaps the company has turned over a new leaf.

View our latest analysis for Wooshin Systems

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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.

Wooshin Systems saw its EPS decline at a compound rate of 33% per year, over the last three years. This fall in the EPS is worse than the 25% compound annual share price fall. So the market may not be too worried about the EPS figure, at the moment -- or it may have previously priced some of the drop in.

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

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

A Different Perspective

Wooshin Systems shareholders are down 31% for the year, but the market itself is up 31%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 4% per year over five years. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. 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. Take risks, for example - Wooshin Systems has 3 warning signs (and 2 which are concerning) we think you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can 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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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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