Did Creas F&CLtd's (KOSDAQ:110790) Share Price Deserve to Gain 53%?

These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But investors can boost returns by picking market-beating companies to own shares in. To wit, the Creas F&C Co.,Ltd (KOSDAQ:110790) share price is 53% higher than it was a year ago, much better than the market return of around 44% (not including dividends) in the same period. That's a solid performance by our standards! We'll need to follow Creas F&CLtd for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.

Check out our latest analysis for Creas F&CLtd

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 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).

Creas F&CLtd was able to grow EPS by 28% in the last twelve months. The share price gain of 53% certainly outpaced the EPS growth. This indicates that the market is now more optimistic about the stock.

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

Dive deeper into Creas F&CLtd's key metrics by checking this interactive graph of Creas F&CLtd's earnings, revenue and cash flow.

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Creas F&CLtd, it has a TSR of 58% for the last year. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

It's nice to see that Creas F&CLtd shareholders have gained 58% over the last year, including dividends. The more recent returns haven't been as impressive as the longer term returns, coming in at just 10%. 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). 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. Take risks, for example - Creas F&CLtd has 1 warning sign we think you should be aware of.

Of course Creas F&CLtd may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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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