Stock Analysis

Jeongsan AikangLtd (KOSDAQ:022220) Share Prices Have Dropped 35% In The Last Three Years

KOSDAQ:A022220
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In order to justify the effort of selecting individual stocks, it's worth striving to beat the returns from a market index fund. But if you try your hand at stock picking, your risk returning less than the market. Unfortunately, that's been the case for longer term Jeongsan Aikang Co.,Ltd. (KOSDAQ:022220) shareholders, since the share price is down 35% in the last three years, falling well short of the market return of around 35%. It's down 4.5% in the last seven days.

Check out our latest analysis for Jeongsan AikangLtd

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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.

During the three years that the share price fell, Jeongsan AikangLtd's earnings per share (EPS) dropped by 22% each year. In comparison the 13% compound annual share price decline isn't as bad as the EPS drop-off. This suggests that the market retains some optimism around long term earnings stability, despite past EPS declines.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

earnings-per-share-growth
KOSDAQ:A022220 Earnings Per Share Growth February 26th 2021

It might be well worthwhile taking a look at our free report on Jeongsan AikangLtd's earnings, revenue and cash flow.

A Different Perspective

Jeongsan AikangLtd shareholders are up 4.9% for the year. Unfortunately this falls short of the market return. But at least that's still a gain! Over five years the TSR has been a reduction of 1.3% per year, over five years. It could well be that the business is stabilizing. 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. To that end, you should be aware of the 3 warning signs we've spotted with Jeongsan AikangLtd .

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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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