Cosmecca Korea's (KOSDAQ:241710) Stock Price Has Reduced 58% In The Past Three Years

While not a mind-blowing move, it is good to see that the Cosmecca Korea Co., Ltd. (KOSDAQ:241710) share price has gained 12% in the last three months. Meanwhile over the last three years the stock has dropped hard. Tragically, the share price declined 58% in that time. So it is really good to see an improvement. Perhaps the company has turned over a new leaf.

Check out our latest analysis for Cosmecca Korea

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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.

Cosmecca Korea saw its EPS decline at a compound rate of 46% per year, over the last three years. In comparison the 25% compound annual share price decline isn't as bad as the EPS drop-off. So, despite the prior disappointment, shareholders must have some confidence the situation will improve, longer term. This positive sentiment is also reflected in the generous P/E ratio of 45.35.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

It might be well worthwhile taking a look at our free report on Cosmecca Korea's earnings, revenue and cash flow.

A Different Perspective

Cosmecca Korea produced a TSR of 21% over the last year. It's always nice to make money but this return falls short of the market return which was about 27% for the year. The silver lining is that the recent rise is far preferable to the annual loss of 16% that shareholders have suffered over the last three years. It could well be that the business is stabilizing. It's always interesting to track share price performance over the longer term. But to understand Cosmecca Korea better, we need to consider many other factors. Take risks, for example - Cosmecca Korea has 2 warning signs (and 1 which can't be ignored) we think you should know about.

But note: Cosmecca Korea may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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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