Introducing KyungbangLtd (KRX:000050), A Stock That Climbed 43% In The Last Year

On average, over time, stock markets tend to rise higher. This makes investing attractive. But not every stock you buy will perform as well as the overall market. For example, the Kyungbang Co.,Ltd (KRX:000050), share price is up over the last year, but its gain of 43% trails the market return. On the other hand, longer term shareholders have had a tougher run, with the stock falling 9.7% in three years.

Check out our latest analysis for KyungbangLtd

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 flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During the last year KyungbangLtd saw its earnings per share (EPS) increase strongly. We don't think the exact number is a good guide to the sustainable growth rate, but we do think this sort of increase is impressive. We are not surprised the share price is up. Strong growth like this can be evidence of a fundamental inflection point in the business, making it a good time to investigate the stock more closely.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

This free interactive report on KyungbangLtd's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

KyungbangLtd provided a TSR of 45% over the year (including dividends). That's fairly close to the broader market return. The silver lining is that the share price is up in the short term, which flies in the face of the annualised loss of 6% over the last five years. While 'turnarounds seldom turn' there are green shoots for KyungbangLtd. It's always interesting to track share price performance over the longer term. But to understand KyungbangLtd better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with KyungbangLtd (including 1 which is a bit unpleasant) .

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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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