Investors Who Bought KNOTUSLtd (KOSDAQ:278650) Shares A Year Ago Are Now Up 26%

The KNOTUS Co.,Ltd (KOSDAQ:278650) share price has had a bad week, falling 14%. Taking a longer term view we see the stock is up over one year. But to be blunt its return of 26% fall short of what you could have got from an index fund (around 45%).

View our latest analysis for KNOTUSLtd

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During the last year KNOTUSLtd grew its earnings per share (EPS) by 81%. This EPS growth is significantly higher than the 26% increase in the share price. Therefore, it seems the market isn't as excited about KNOTUSLtd as it was before. This could be an opportunity.

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

Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.

A Different Perspective

KNOTUSLtd shareholders have gained 26% for the year. While it's always nice to make a profit on the stock market, we do note that the TSR was no better than the broader market return of about 45%. The stock trailed the market by 17% in that time, testament to the power of passive investing. But a weak quarter certainly doesn't diminish the longer-term achievements of the business. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with KNOTUSLtd , and understanding them should be part of your investment process.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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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