Imagine Holding NOVATECH (KOSDAQ:285490) Shares While The Price Zoomed 339% Higher

While some are satisfied with an index fund, active investors aim to find truly magnificent investments on the stock market. When an investor finds a multi-bagger (a stock that goes up over 200%), it makes a big difference to their portfolio. For example, the NOVATECH Co., Ltd. (KOSDAQ:285490) share price is up a whopping 339% in the last year, a handsome return in a single year. Also pleasing for shareholders was the 158% gain in the last three months. We'll need to follow NOVATECH for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.

Check out our latest analysis for NOVATECH

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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 the last year NOVATECH grew its earnings per share (EPS) by 96%. The share price gain of 339% certainly outpaced the EPS growth. So it's fair to assume the market has a higher opinion of the business than it a year ago.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

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

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of NOVATECH, it has a TSR of 345% for the last year. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence!

A Different Perspective

NOVATECH boasts a total shareholder return of 345% for the last year (that includes the dividends) . A substantial portion of that gain has come in the last three months, with the stock up 158% in that time. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. It's always interesting to track share price performance over the longer term. But to understand NOVATECH better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with NOVATECH .

We will like NOVATECH 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.

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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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