Stock Analysis

The BORATR (KOSDAQ:250000) Share Price Is Up 42% And Shareholders Are Holding On

KOSDAQ:A250000
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We believe investing is smart because history shows that stock markets go higher in the long term. But not every stock you buy will perform as well as the overall market. Over the last year the BORATR CO., Ltd. (KOSDAQ:250000) share price is up 42%, but that's less than the broader market return. The longer term returns have not been as good, with the stock price only 5.0% higher than it was three years ago.

See our latest analysis for BORATR

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).

Over the last twelve months, BORATR actually shrank its EPS by 37%.

This means it's unlikely the market is judging the company based on earnings growth. Since the change in EPS doesn't seem to correlate with the change in share price, it's worth taking a look at other metrics.

We are skeptical of the suggestion that the 1.1% dividend yield would entice buyers to the stock. We think that the revenue growth of 16% could have some investors interested. Many businesses do go through a phase where they have to forgo some profits to drive business development, and sometimes its for the best.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

earnings-and-revenue-growth
KOSDAQ:A250000 Earnings and Revenue Growth March 3rd 2021

If you are thinking of buying or selling BORATR stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Over the last year BORATR shareholders have received a TSR of 43%. It's always nice to make money but this return falls short of the market return which was about 55% for the year. On the other hand, the TSR over three years was worse, at just 3% per year. This suggests the company's position is improving. If the share price is up as a result of improved business performance, then this kind of improvement may be sustained. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 7 warning signs with BORATR (at least 2 which are significant) , and understanding them should be part of your investment process.

But note: BORATR 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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Valuation is complex, but we're helping make it simple.

Find out whether BORATR is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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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