If You Had Bought BINEX (KOSDAQ:053030) Stock A Year Ago, You Could Pocket A 253% Gain Today

When you buy shares in a company, there is always a risk that the price drops to zero. But if you pick the right business to buy shares in, you can make more than you can lose. For example, the BINEX Co., Ltd. (KOSDAQ:053030) share price had more than doubled in just one year - up 253%. In the last week shares have slid back 3.1%. Also impressive, the stock is up 127% over three years, making long term shareholders happy, too.

See our latest analysis for BINEX

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 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.

During the last year BINEX grew its earnings per share (EPS) by 7.1%. This EPS growth is significantly lower than the 253% increase in the share price. This indicates that the market is now more optimistic about the stock. The fairly generous P/E ratio of 59.38 also points to this optimism.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

It is of course excellent to see how BINEX has grown profits over the years, but the future is more important for shareholders. You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

It's nice to see that BINEX shareholders have received a total shareholder return of 253% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 7% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. Before deciding if you like the current share price, check how BINEX scores on these 3 valuation metrics.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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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