Foodnamoo (KOSDAQ:290720) Shareholders Booked A 42% Gain In The Last Year

It's always best to build a diverse portfolio of shares, since any stock business could lag the broader market. Of course, the aim of the game is to pick stocks that do better than an index fund. Foodnamoo., Inc. (KOSDAQ:290720) has done well over the last year, with the stock price up 42% beating the market return of 39% (not including dividends). Foodnamoo hasn't been listed for long, so it's still not clear if it is a long term winner.

Check out our latest analysis for Foodnamoo

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, Foodnamoo actually saw its earnings per share drop 0.9%.

The mild decline in EPS may be a result of the fact that the company is more focused on other aspects of the business, right now. It makes sense to check some of the other fundamental data for an explanation of the share price rise.

We doubt the modest 0.3% dividend yield is doing much to support the share price. However the year on year revenue growth of 70% would help. 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).

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

A Different Perspective

Foodnamoo shareholders have gained 43% over twelve months (even including dividends), which isn't far from the market return of 42%. Unfortunately the share price is down 0.2% over the last quarter. This could simply be a short term fluctuation, though. Even the biggest winners have their down periods. It's always interesting to track share price performance over the longer term. But to understand Foodnamoo better, we need to consider many other factors. Even so, be aware that Foodnamoo is showing 1 warning sign in our investment analysis , you should know about...

Of course Foodnamoo 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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