HJ Shipbuilding & Construction (KRX:097230) delivers shareholders strong 101% return over 1 year, surging 15% in the last week alone

When you buy shares in a company, there is always a risk that the price drops to zero. But if you pick the right stock, you can make a lot more than 100%. For example, the HJ Shipbuilding & Construction Co., Ltd. (KRX:097230) share price had more than doubled in just one year - up 101%. Shareholders are also celebrating an even better 146% rise, over the last three months. However, the longer term returns haven't been so impressive, with the stock up just 0.6% in the last three years.

Since the stock has added ₩78b to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

See our latest analysis for HJ Shipbuilding & Construction

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

HJ Shipbuilding & Construction went from making a loss to reporting a profit, in the last year.

We think the growth looks very prospective, so we're not surprised the market liked it too. Generally speaking the profitability inflection point is a great time to research a company closely, lest you miss an opportunity to profit.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

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

A Different Perspective

It's nice to see that HJ Shipbuilding & Construction shareholders have received a total shareholder return of 101% over the last year. That gain is better than the annual TSR over five years, which is 9%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand HJ Shipbuilding & Construction better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for HJ Shipbuilding & Construction you should be aware of.

If you are like me, then you will not want to miss this free list of undervalued small caps 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 South Korean exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.