If You Had Bought Samhwa Networks (KOSDAQ:046390) Stock Five Years Ago, You Could Pocket A 64% Gain Today

If you want to compound wealth in the stock market, you can do so by buying an index fund. But you can do a lot better than that by buying good quality businesses for attractive prices. For example, the Samhwa Networks Co., Ltd. (KOSDAQ:046390) share price is up 64% in the last five years, slightly above the market return. It's also good to see a healthy gain of 29% in the last year.

Check out our latest analysis for Samhwa Networks

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 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 half decade, Samhwa Networks became profitable. That would generally be considered a positive, so we'd expect the share price to be up.

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

It might be well worthwhile taking a look at our free report on Samhwa Networks' earnings, revenue and cash flow.

A Different Perspective

Samhwa Networks shareholders are up 29% for the year. But that return falls short of the market. The silver lining is that the gain was actually better than the average annual return of 10% per year over five year. This could indicate that the company is winning over new investors, as it pursues its strategy. It's always interesting to track share price performance over the longer term. But to understand Samhwa Networks better, we need to consider many other factors. Even so, be aware that Samhwa Networks is showing 2 warning signs in our investment analysis , you should know about...

Of course Samhwa Networks 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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