Shareholders Are Raving About How The Sambu Engineering & Construction (KRX:001470) Share Price Increased 527%

While Sambu Engineering & Construction Co., Ltd (KRX:001470) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 27% in the last quarter. But that isn't a problem when you consider how the share price has soared over the last year. Indeed, the share price is up a whopping 527% in that time. So the recent fall isn't enough to negate the good performance. While winners often keep winning, it can pay to be cautious after a strong rise.

We love happy stories like this one. The company should be really proud of that performance!

Check out our latest analysis for Sambu Engineering & Construction

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 flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Sambu Engineering & Construction was able to grow EPS by 37% in the last twelve months. The share price gain of 527% certainly outpaced the EPS growth. This indicates that the market is now more optimistic about the stock. This favorable sentiment is reflected in its (fairly optimistic) P/E ratio of 54.94.

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

Dive deeper into Sambu Engineering & Construction's key metrics by checking this interactive graph of Sambu Engineering & Construction's earnings, revenue and cash flow.

A Different Perspective

We're pleased to report that Sambu Engineering & Construction shareholders have received a total shareholder return of 527% over one year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 15% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 4 warning signs with Sambu Engineering & Construction (at least 2 which are a bit concerning) , and understanding them should be part of your investment process.

We will like Sambu Engineering & Construction 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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