Stock Analysis

If You Had Bought KCC GLASS (KRX:344820) Stock A Year Ago, You Could Pocket A 158% Gain Today

KOSE:A344820
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When you buy shares in a company, there is always a risk that the price drops to zero. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! Take, for example KCC GLASS Corporation (KRX:344820). Its share price is already up an impressive 158% in the last twelve months. On top of that, the share price is up 18% in about a quarter. But this move may well have been assisted by the reasonably buoyant market (up 8.9% in 90 days). Note that businesses generally develop over the long term, so the returns over the last year might not reflect a long term trend.

See our latest analysis for KCC GLASS

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).

What about the Total Shareholder Return (TSR)?

Investors should note that there's a difference between KCC GLASS' total shareholder return (TSR) and its share price change, which we've covered above. Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. We note that KCC GLASS' TSR, at 172% is higher than its share price return of 158%. When you consider it hasn't been paying a dividend, this data suggests shareholders have benefitted from a spin-off, or had the opportunity to acquire attractively priced shares in a discounted capital raising.

A Different Perspective

KCC GLASS boasts a total shareholder return of 172% for the last year. The more recent returns haven't been as impressive as the longer term returns, coming in at just 18%. Having said that, we doubt shareholders would be concerned. It seems the market is simply waiting on more information, because if the business delivers so will the share price (eventually). It's always interesting to track share price performance over the longer term. But to understand KCC GLASS better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for KCC GLASS you should be aware of, and 1 of them shouldn't be ignored.

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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