Investors Who Bought mPLUS (KOSDAQ:259630) Shares A Year Ago Are Now Up 54%

If you want to compound wealth in the stock market, you can do so by buying an index fund. But if you pick the right individual stocks, you could make more than that. To wit, the mPLUS Corp. (KOSDAQ:259630) share price is 54% higher than it was a year ago, much better than the market return of around 39% (not including dividends) in the same period. If it can keep that out-performance up over the long term, investors will do very well! Having said that, the longer term returns aren't so impressive, with stock gaining just 30% in three years.

See our latest analysis for mPLUS

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. 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.

mPLUS was able to grow EPS by 25% in the last twelve months. This EPS growth is significantly lower than the 54% increase in the share price. This indicates that the market is now more optimistic about the stock. The fairly generous P/E ratio of 50.22 also points to this optimism.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

We know that mPLUS has improved its bottom line lately, but is it going to grow revenue? You could check out this free report showing analyst revenue forecasts.

A Different Perspective

We're pleased to report that mPLUS rewarded shareholders with a total shareholder return of 54% over the last year. That's better than the annualized TSR of 9% over the last three years. The improving returns to shareholders suggests the stock is becoming more popular with 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. For example, we've discovered 4 warning signs for mPLUS (2 can't be ignored!) that you should be aware of before investing here.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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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