Investors can approximate the average market return by buying an index fund. When you buy individual stocks, you can make higher profits, but you also face the risk of under-performance. Investors in SG Co.,Ltd. (KOSDAQ:255220) have tasted that bitter downside in the last year, as the share price dropped 18%. That falls noticeably short of the market return of around 27%. SGLtd hasn't been listed for long, so although we're wary of recent listings that perform poorly, it may still prove itself with time. It's down 22% in about a quarter.
Check out our latest analysis for SGLtd
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).
During the last year SGLtd saw its earnings per share drop below zero. Buyers no doubt think it's a temporary situation, but those with a nose for quality have low tolerance for losses. However, there may be an opportunity for investors if the company can recover.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
Dive deeper into SGLtd's key metrics by checking this interactive graph of SGLtd's earnings, revenue and cash flow.
A Different Perspective
Given that the market gained 27% in the last year, SGLtd shareholders might be miffed that they lost 18%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. It's worth noting that the last three months did the real damage, with a 22% decline. So it seems like some holders have been dumping the stock of late - and that's not bullish. It's always interesting to track share price performance over the longer term. But to understand SGLtd better, we need to consider many other factors. For instance, we've identified 4 warning signs for SGLtd (2 are concerning) that you should be aware of.
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
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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About KOSDAQ:A255220
SGLtd
SG Co., Ltd. produces and sells asphalt concrete and ready-mixed concrete in South Korea.
Excellent balance sheet low.
