Update: Samchuly Bicycle (KOSDAQ:024950) Stock Gained 59% In The Last Year

Samchuly Bicycle Co., Ltd (KOSDAQ:024950) shareholders might be concerned after seeing the share price drop 16% in the last quarter. But looking back over the last year, the returns have actually been rather pleasing! Looking at the full year, the company has easily bested an index fund by gaining 59%.

View our latest analysis for Samchuly Bicycle

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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 Samchuly Bicycle grew its earnings per share (EPS) by 29%. We note, however, that extraordinary items have impacted earnings. This EPS growth is significantly lower than the 59% increase in the share price. 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 Samchuly Bicycle's earnings, revenue and cash flow.

A Different Perspective

It's good to see that Samchuly Bicycle has rewarded shareholders with a total shareholder return of 59% in the last twelve months. There's no doubt those recent returns are much better than the TSR loss of 8% per year over five years. This makes us a little wary, but the business might have turned around its fortunes. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we've discovered 3 warning signs for Samchuly Bicycle (1 is potentially serious!) that you should be aware of before investing here.

But note: Samchuly Bicycle may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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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