Should Drgem (KOSDAQ:263690) Be Disappointed With Their 99% Profit?

It hasn't been the best quarter for Drgem Corporation (KOSDAQ:263690) shareholders, since the share price has fallen 18% in that time. While that might be a setback, it doesn't negate the nice returns received over the last twelve months. After all, the share price is up a market-beating 99% in that time.

View our latest analysis for Drgem

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

During the last year Drgem grew its earnings per share (EPS) by 306%. It's fair to say that the share price gain of 99% did not keep pace with the EPS growth. So it seems like the market has cooled on Drgem, despite the growth. Interesting. This cautious sentiment is reflected in its (fairly low) P/E ratio of 8.68.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

Dive deeper into Drgem's key metrics by checking this interactive graph of Drgem's earnings, revenue and cash flow.

A Different Perspective

Drgem boasts a total shareholder return of 101% for the last year (that includes the dividends) . Unfortunately the share price is down 18% over the last quarter. It may simply be that the share price got ahead of itself, although there may have been fundamental developments that are weighing on it. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Drgem , and understanding them should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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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