Introducing Hanall BiopharmaLtd (KRX:009420), The Stock That Zoomed 103% In The Last Five Years

It might be of some concern to shareholders to see the Hanall Biopharma Co.,Ltd (KRX:009420) share price down 27% in the last month. But that doesn't change the fact that shareholders have received really good returns over the last five years. In fact, the share price is 103% higher today. So while it's never fun to see a share price fall, it's important to look at a longer time horizon. Of course, that doesn't necessarily mean it's cheap now.

View our latest analysis for Hanall BiopharmaLtd

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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 half decade, Hanall BiopharmaLtd became profitable. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here. Given that the company made a profit three years ago, but not five years ago, it is worth looking at the share price returns over the last three years, too. We can see that the Hanall BiopharmaLtd share price is down 19% in the last three years. Meanwhile, EPS is up 76% per year. It would appear there's a real mismatch between the increasing EPS and the share price, which has declined -7% a year for three years.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

We know that Hanall BiopharmaLtd has improved its bottom line over the last three years, but what does the future have in store? It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

Hanall BiopharmaLtd shareholders gained a total return of 1.2% during the year. But that return falls short of the market. If we look back over five years, the returns are even better, coming in at 15% per year for five years. It may well be that this is a business worth popping on the watching, given the continuing positive reception, over time, from the market. 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. For example, we've discovered 2 warning signs for Hanall BiopharmaLtd (1 is a bit unpleasant!) that you should be aware of before investing here.

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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