If You Had Bought NewtreeLtd (KOSDAQ:270870) Shares A Year Ago You'd Have Earned 64% Returns

These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But if you pick the right individual stocks, you could make more than that. For example, the Newtree Co.,Ltd. (KOSDAQ:270870) share price is up 64% in the last year, clearly besting the market return of around 22% (not including dividends). That's a solid performance by our standards! We'll need to follow NewtreeLtd 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 NewtreeLtd

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...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

NewtreeLtd was able to grow EPS by 148% in the last twelve months. It's fair to say that the share price gain of 64% did not keep pace with the EPS growth. Therefore, it seems the market isn't as excited about NewtreeLtd as it was before. This could be an opportunity.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

It is of course excellent to see how NewtreeLtd has grown profits over the years, but the future is more important for shareholders. You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

NewtreeLtd boasts a total shareholder return of 65% for the last year (that includes the dividends) . That's better than the more recent three month gain of 9.0%, implying that share price has plateaued recently. Having said that, we doubt shareholders would be concerned. It seems the market is simply waiting on more information, because if the business delivers so will the share price (eventually). 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. For example, we've discovered 1 warning sign for NewtreeLtd that you should be aware of before investing here.

But note: NewtreeLtd 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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