Update: Sejong Medical (KOSDAQ:258830) Stock Gained 53% In The Last Year

A diverse portfolio of stocks will always have winners and losers. Of course, the aim of the game is to pick stocks that do better than an index fund. Sejong Medical Co., Ltd. (KOSDAQ:258830) has done well over the last year, with the stock price up 53% beating the market return of 50% (not including dividends). We'll need to follow Sejong Medical for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.

View our latest analysis for Sejong Medical

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.

Over the last twelve months, Sejong Medical actually shrank its EPS by 53%.

This means it's unlikely the market is judging the company based on earnings growth. Therefore, it seems likely that investors are putting more weight on metrics other than EPS, at the moment.

We are skeptical of the suggestion that the 0.9% dividend yield would entice buyers to the stock. Revenue was pretty stable on last year, so deeper research might be needed to explain the share price rise.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

Take a more thorough look at Sejong Medical's financial health with this free report on its balance sheet.

A Different Perspective

In the last year the market returned about 55%, and Sejong Medical generated a TSR of 55% for its shareholders. Unfortunately the share price is down 5.7% over the last quarter. This could simply be a short term fluctuation, though. Even the biggest winners have their down periods. 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 5 warning signs with Sejong Medical (at least 1 which makes us a bit uncomfortable) , and understanding them should be part of your investment process.

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.

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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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