Is Dongwha Pharm.Co.Ltd's (KRX:000020) Share Price Gain Of 102% Well Earned?

Dongwha Pharm.Co.,Ltd (KRX:000020) shareholders might be concerned after seeing the share price drop 19% in the last month. On the other hand, over the last twelve months the stock has delivered rather impressive returns. Indeed, the share price is up an impressive 102% in that time. So some might not be surprised to see the price retrace some. More important, going forward, is how the business itself is going.

View our latest analysis for Dongwha Pharm.Co.Ltd

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.

During the last year Dongwha Pharm.Co.Ltd saw its earnings per share (EPS) increase strongly. We don't think the exact number is a good guide to the sustainable growth rate, but we do think this sort of increase is impressive. We are not surprised the share price is up. Strong growth like this can be evidence of a fundamental inflection point in the business, making it a good time to investigate the stock more closely.

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

Dive deeper into Dongwha Pharm.Co.Ltd's key metrics by checking this interactive graph of Dongwha Pharm.Co.Ltd's earnings, revenue and cash flow.

A Different Perspective

It's nice to see that Dongwha Pharm.Co.Ltd shareholders have received a total shareholder return of 103% over the last year. That's including the dividend. That gain is better than the annual TSR over five years, which is 17%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. To that end, you should learn about the 3 warning signs we've spotted with Dongwha Pharm.Co.Ltd (including 1 which shouldn't be ignored) .

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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