Jeju Semiconductor's (KOSDAQ:080220) five-year earnings growth trails the fantastic shareholder returns

Buying shares in the best businesses can build meaningful wealth for you and your family. And highest quality companies can see their share prices grow by huge amounts. Don't believe it? Then look at the Jeju Semiconductor Corp. (KOSDAQ:080220) share price. It's 316% higher than it was five years ago. And this is just one example of the epic gains achieved by some long term investors. In more good news, the share price has risen 61% in thirty days.

Since it's been a strong week for Jeju Semiconductor shareholders, let's have a look at trend of the longer term fundamentals.

See our latest analysis for Jeju Semiconductor

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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.

Over half a decade, Jeju Semiconductor managed to grow its earnings per share at 45% a year. The EPS growth is more impressive than the yearly share price gain of 33% over the same period. So one could conclude that the broader market has become more cautious towards the stock. Of course, with a P/E ratio of 60.78, the market remains optimistic.

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

Dive deeper into Jeju Semiconductor's key metrics by checking this interactive graph of Jeju Semiconductor's earnings, revenue and cash flow.

A Different Perspective

We regret to report that Jeju Semiconductor shareholders are down 44% for the year. Unfortunately, that's worse than the broader market decline of 3.3%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Longer term investors wouldn't be so upset, since they would have made 33%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand Jeju Semiconductor better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Jeju Semiconductor , and understanding them should be part of your investment process.

We will like Jeju Semiconductor better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on South Korean exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.