Can You Imagine How Jubilant Y-Entec's (KOSDAQ:067900) Shareholders Feel About Its 299% Share Price Gain?

When you buy a stock there is always a possibility that it could drop 100%. But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%. One great example is Y-Entec Co., Ltd. (KOSDAQ:067900) which saw its share price drive 299% higher over five years. The last week saw the share price soften some 3.3%.

Check out our latest analysis for Y-Entec

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.

Over half a decade, Y-Entec managed to grow its earnings per share at 39% a year. The EPS growth is more impressive than the yearly share price gain of 32% over the same period. So one could conclude that the broader market has become more cautious towards the stock. This cautious sentiment is reflected in its (fairly low) P/E ratio of 9.52.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

Dive deeper into Y-Entec's key metrics by checking this interactive graph of Y-Entec's earnings, revenue and cash flow.

A Different Perspective

Y-Entec shareholders gained a total return of 35% during the year. Unfortunately this falls short of the market return. On the bright side, that's still a gain, and it's actually better than the average return of 32% over half a decade It is possible that returns will improve along with the business fundamentals. 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. For example, we've discovered 1 warning sign for Y-Entec that you should be aware of before investing here.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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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