Investors Who Bought G Enone Energy (KOSDAQ:270520) Shares A Year Ago Are Now Up 127%

G Enone Energy Co., Ltd. (KOSDAQ:270520) shareholders might be concerned after seeing the share price drop 23% in the last week. On the other hand, over the last twelve months the stock has delivered rather impressive returns. During that period, the share price soared a full 127%. So it is important to view the recent reduction in price through that lense. Investors should be wondering whether the business itself has the fundamental value required to continue to drive gains.

Check out our latest analysis for G Enone Energy

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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 G Enone Energy saw its earnings per share (EPS) drop below zero. While this may prove temporary, we'd consider it a negative, so we would not have expected to see the share price up. We might get a clue to explain the share price move by looking to other metrics.

G Enone Energy's revenue actually dropped 14% over last year. So the fundamental metrics don't provide an obvious explanation for the share price gain.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

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

A Different Perspective

It's nice to see that G Enone Energy shareholders have gained 127% (in total) over the last year. That's better than the annualized TSR of 19% over the last three years. The improving returns to shareholders suggests the stock is becoming more popular with time. 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. To that end, you should learn about the 4 warning signs we've spotted with G Enone Energy (including 1 which is concerning) .

But note: G Enone Energy 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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