If You Had Bought UNISEM (KOSDAQ:036200) Stock A Year Ago, You Could Pocket A 70% Gain Today

Passive investing in index funds can generate returns that roughly match the overall market. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). For example, the UNISEM Co., Ltd. (KOSDAQ:036200) share price is up 70% in the last year, clearly besting the market return of around 26% (not including dividends). So that should have shareholders smiling. The longer term returns have not been as good, with the stock price only 10% higher than it was three years ago.

Check out our latest analysis for UNISEM

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. 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 UNISEM grew its earnings per share (EPS) by 145%. It's fair to say that the share price gain of 70% did not keep pace with the EPS growth. Therefore, it seems the market isn't as excited about UNISEM as it was before. This could be an opportunity. This cautious sentiment is reflected in its (fairly low) P/E ratio of 7.44.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

We know that UNISEM has improved its bottom line lately, but is it going to grow revenue? You could check out this free report showing analyst revenue forecasts.

A Different Perspective

It's good to see that UNISEM has rewarded shareholders with a total shareholder return of 72% in the last twelve months. That's including the dividend. That gain is better than the annual TSR over five years, which is 3%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. Before forming an opinion on UNISEM you might want to consider these 3 valuation metrics.

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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