If You Had Bought Shinsung Delta TechLtd (KOSDAQ:065350) Stock A Year Ago, You Could Pocket A 103% Gain Today

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! For example, the Shinsung Delta Tech Co.,Ltd. (KOSDAQ:065350) share price had more than doubled in just one year - up 103%. In the last week the share price is up 4.2%. Having said that, the longer term returns aren't so impressive, with stock gaining just 23% in three years.

See our latest analysis for Shinsung Delta TechLtd

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. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

During the last year, Shinsung Delta TechLtd actually saw its earnings per share drop 43%.

Given the share price gain, we doubt the market is measuring progress with EPS. Therefore, it seems likely that investors are putting more weight on metrics other than EPS, at the moment.

We doubt the modest 1.1% dividend yield is doing much to support the share price. We think that the revenue growth of 4.0% could have some investors interested. Many businesses do go through a phase where they have to forgo some profits to drive business development, and sometimes its for the best.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

Take a more thorough look at Shinsung Delta TechLtd's financial health with this free report on its balance sheet.

A Different Perspective

We're pleased to report that Shinsung Delta TechLtd shareholders have received a total shareholder return of 103% over one year. That's including the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 12% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Shinsung Delta TechLtd better, we need to consider many other factors. Even so, be aware that Shinsung Delta TechLtd is showing 5 warning signs in our investment analysis , and 2 of those are concerning...

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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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