Does Pulmuone's (KRX:017810) Share Price Gain of 57% Match Its Business Performance?

The simplest way to invest in stocks is to buy exchange traded funds. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). For example, the Pulmuone Co., Ltd. (KRX:017810) share price is up 57% in the last year, clearly besting the market return of around 42% (not including dividends). That's a solid performance by our standards! Zooming out, the stock is actually down 1.2% in the last three years.

Check out our latest analysis for Pulmuone

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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 Pulmuone grew its earnings per share (EPS) by 24%. The share price gain of 57% certainly outpaced the EPS growth. This indicates that the market is now more optimistic about the stock.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

We know that Pulmuone has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Pulmuone will grow revenue in the future.

A Different Perspective

We're pleased to report that Pulmuone shareholders have received a total shareholder return of 58% over one year. And that does include the dividend. That certainly beats the loss of about 2% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. 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. Take risks, for example - Pulmuone has 1 warning sign we think you should be aware of.

Of course Pulmuone 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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