The BIFIDO (KOSDAQ:238200) Share Price Is Up 31% And Shareholders Are Holding On

We believe investing is smart because history shows that stock markets go higher in the long term. But not every stock you buy will perform as well as the overall market. Over the last year the BIFIDO Co., Ltd (KOSDAQ:238200) share price is up 31%, but that's less than the broader market return. BIFIDO hasn't been listed for long, so it's still not clear if it is a long term winner.

See our latest analysis for BIFIDO

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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 BIFIDO saw its earnings per share (EPS) drop below zero. While some may see this as temporary, we're a skeptical bunch, and so we're a little surprised to see the share price go up. It may be that the company has done well on other metrics.

BIFIDO's revenue actually dropped 8.4% over last year. So using a snapshot of key business metrics doesn't give us a good picture of why the market is bidding up the stock.

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 BIFIDO's financial health with this free report on its balance sheet.

A Different Perspective

We're happy to report that BIFIDO are up 31% over the year. While it's always nice to make a profit on the stock market, we do note that the TSR was no better than the broader market return of about 56%. It's always interesting to track share price performance over the longer term. But to understand BIFIDO better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for BIFIDO (of which 1 can't be ignored!) you should know about.

Of course BIFIDO 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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