Did You Miss Harim Holdings' (KOSDAQ:003380) Impressive 111% Share Price Gain?

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But if you pick the right stock, you can make a lot more than 100%. For example, the Harim Holdings Co., Ltd. (KOSDAQ:003380) share price has soared 111% in the last year. Most would be very happy with that, especially in just one year! It's also good to see the share price up 20% over the last quarter. But this could be related to the strong market, which is up 8.1% in the last three months. On the other hand, longer term shareholders have had a tougher run, with the stock falling 35% in three years.

View our latest analysis for Harim Holdings

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

During the last year, Harim Holdings actually saw its earnings per share drop 1.3%.

We don't think that the decline in earnings per share is a good measure of the business over the last twelve months. It makes sense to check some of the other fundamental data for an explanation of the share price rise.

We are skeptical of the suggestion that the 0.6% dividend yield would entice buyers to the stock. We think that the revenue growth of 5.1% 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.

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

Take a more thorough look at Harim Holdings' financial health with this free report on its balance sheet.

A Different Perspective

Harim Holdings shareholders have gained 112% over twelve months (even including dividends). This isn't far from the market return of 102%. Given the three-year TSR of 10% per year, shareholders probably aren't too concerned by the recent gain! It could well be that the business is getting back on track. It's always interesting to track share price performance over the longer term. But to understand Harim Holdings better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Harim Holdings you should be aware of.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on KR exchanges.

If you’re looking to trade Harim Holdings, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.