Stock Analysis

The DAEYANG ELECTRIC.Co.Ltd (KOSDAQ:108380) Share Price Is Up 24% And Shareholders Are Holding On

KOSDAQ:A108380
Source: Shutterstock

DAEYANG ELECTRIC.Co.,Ltd. (KOSDAQ:108380) shareholders have seen the share price descend 14% over the month. On the bright side the share price is up over the last half decade. However we are not very impressed because the share price is only up 24%, less than the market return of 51%.

Check out our latest analysis for DAEYANG ELECTRIC.Co.Ltd

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

During five years of share price growth, DAEYANG ELECTRIC.Co.Ltd actually saw its EPS drop 8.9% per year.

The strong decline in earnings per share suggests the market isn't using EPS to judge the company. Given that EPS is down, but the share price is up, it seems clear the market is focussed on other aspects of the business, at the moment.

We doubt the modest 1.4% dividend yield is attracting many buyers to the stock. The revenue growth of 0.3% per year hardly seems impressive. So why is the share price up? It's not immediately obvious to us, but a closer look at the company's progress over time might yield answers.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

earnings-and-revenue-growth
KOSDAQ:A108380 Earnings and Revenue Growth December 10th 2020

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

DAEYANG ELECTRIC.Co.Ltd shareholders are up 10% for the year (even including dividends). But that was short of the market average. On the bright side, that's still a gain, and it's actually better than the average return of 5% over half a decade This suggests the company might be improving over time. 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. Even so, be aware that DAEYANG ELECTRIC.Co.Ltd is showing 4 warning signs in our investment analysis , and 1 of those is concerning...

We will like DAEYANG ELECTRIC.Co.Ltd better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on KR exchanges.

When trading DAEYANG ELECTRIC.Co.Ltd or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted


New: Manage All Your Stock Portfolios in One Place

We've created the ultimate portfolio companion for stock investors, and it's free.

• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks

Try a Demo Portfolio for Free

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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020


Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.