YeSUN TechLtd's (KOSDAQ:250930) Stock Price Has Reduced 22% In The Past Year

It's easy to match the overall market return by buying an index fund. Active investors aim to buy stocks that vastly outperform the market - but in the process, they risk under-performance. Investors in YeSUN Tech Co.,Ltd. (KOSDAQ:250930) have tasted that bitter downside in the last year, as the share price dropped 22%. That's disappointing when you consider the market returned 42%. Because YeSUN TechLtd hasn't been listed for many years, the market is still learning about how the business performs. It's down 1.0% in the last seven days.

Check out our latest analysis for YeSUN TechLtd

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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.

YeSUN TechLtd managed to increase earnings per share from a loss to a profit, over the last 12 months.

When a company has just transitioned to profitability, earnings per share growth is not always the best way to look at the share price action. But we may find different metrics more enlightening.

On the other hand, we're certainly perturbed by the 14% decline in YeSUN TechLtd's revenue. Many investors see falling revenue as a likely precursor to lower earnings, so this could well explain the weak share price.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

While YeSUN TechLtd shareholders are down 21% for the year, the market itself is up 42%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. With the stock down 5.3% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. It's always interesting to track share price performance over the longer term. But to understand YeSUN TechLtd better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for YeSUN TechLtd you should be aware of, and 3 of them are a bit concerning.

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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