If You Had Bought JT (KOSDAQ:089790) Shares Three Years Ago You'd Have Earned 315% Returns

It's been a soft week for JT Corporation (KOSDAQ:089790) shares, which are down 22%. But over the last three years the stock has shone bright like a diamond. Indeed, the share price is up a whopping 315% in that time. As long term investors the recent fall doesn't detract all that much from the longer term story. The thing to consider is whether there is still too much elation around the company's prospects.

Check out our latest analysis for JT

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 three years of share price growth, JT achieved compound earnings per share growth of 5.0% per year. This EPS growth is lower than the 61% average annual increase in the share price. This suggests that, as the business progressed over the last few years, it gained the confidence of market participants. That's not necessarily surprising considering the three-year track record of earnings growth.

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

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

A Different Perspective

We're pleased to report that JT shareholders have received a total shareholder return of 112% over one year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 26% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. 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. To that end, you should learn about the 3 warning signs we've spotted with JT (including 1 which is is a bit unpleasant) .

Of course JT may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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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