Introducing Gyeongnam Steel (KOSDAQ:039240), A Stock That Climbed 92% In The Last Year

Gyeongnam Steel Co., Ltd (KOSDAQ:039240) shareholders might be concerned after seeing the share price drop 11% in the last week. But that doesn't change the fact that the returns over the last year have been respectable. After all, the stock has performed better than the market's return of (79%) over the last year, and is up 92%.

Check out our latest analysis for Gyeongnam Steel

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).

Over the last twelve months, Gyeongnam Steel actually shrank its EPS by 36%.

So we don't think that investors are paying too much attention to EPS. Since the change in EPS doesn't seem to correlate with the change in share price, it's worth taking a look at other metrics.

Unfortunately Gyeongnam Steel's fell 6.5% over twelve months. So the fundamental metrics don't provide an obvious explanation for the share price gain.

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

If you are thinking of buying or selling Gyeongnam Steel stock, you should check out this FREE detailed report on its balance sheet.

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Gyeongnam Steel's total shareholder return (TSR) and its share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Dividends have been really beneficial for Gyeongnam Steel shareholders, and that cash payout contributed to why its TSR of 102%, over the last year, is better than the share price return.

A Different Perspective

We're pleased to report that Gyeongnam Steel shareholders have received a total shareholder return of 102% over one year. That's better than the annualised return of 7% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. 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 instance, we've identified 5 warning signs for Gyeongnam Steel (1 doesn't sit too well with us) that you should be aware of.

Of course Gyeongnam Steel 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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