Introducing Chunbo (KOSDAQ:278280), The Stock That Zoomed 166% In The Last Year

Chunbo Co., Ltd. (KOSDAQ:278280) shareholders might be concerned after seeing the share price drop 10% in the last week. But that doesn't change the fact that the returns over the last year have been very strong. We're very pleased to report the share price shot up 166% in that time. So we think most shareholders won't be too upset about the recent fall. The real question is whether the business is trending in the right direction.

See our latest analysis for Chunbo

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Over the last twelve months, Chunbo actually shrank its EPS by 15%.

So we don't think that investors are paying too much attention to EPS. Indeed, when EPS is declining but the share price is up, it often means the market is considering other factors.

We doubt the modest 0.2% dividend yield is doing much to support the share price. We think that the revenue growth of 4.4% could have some investors interested. Many businesses do go through a phase where they have to forgo some profits to drive business development, and sometimes its for the best.

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

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

Chunbo shareholders should be happy with the total gain of 167% over the last twelve months, including dividends. The more recent returns haven't been as impressive as the longer term returns, coming in at just 26%. 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. Even so, be aware that Chunbo is showing 2 warning signs in our investment analysis , and 1 of those can't be ignored...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can 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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