The Exicon (KOSDAQ:092870) Share Price Is Up 101% And Shareholders Are Boasting About It

When you buy shares in a company, there is always a risk that the price drops to zero. But if you pick the right stock, you can make a lot more than 100%. Take, for example Exicon Co., Ltd. (KOSDAQ:092870). Its share price is already up an impressive 101% in the last twelve months. On the other hand, the stock price has retraced 8.4% in the last week. However, this might be related to the overall market decline of 3.3% in a week. However, the stock hasn't done so well in the longer term, with the stock only up 12% in three years.

View our latest analysis for Exicon

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 Exicon grew its earnings per share, moving from a loss to a profit.

When a company has just transitioned to profitability, earnings per share growth is not always the best way to look at the share price action.

We doubt the modest 0.5% dividend yield is doing much to support the share price. We think that the revenue growth of 100% could have some investors interested. Many businesses do go through a phase where they have to forgo some profits to drive business development, and sometimes its for the best.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

We know that Exicon has improved its bottom line lately, but what does the future have in store? You can see what analysts are predicting for Exicon in this interactive graph of future profit estimates.

A Different Perspective

It's good to see that Exicon has rewarded shareholders with a total shareholder return of 102% in the last twelve months. Of course, that includes the dividend. That's better than the annualised return of 15% over half a decade, implying that the company is doing better recently. 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. For instance, we've identified 3 warning signs for Exicon (1 makes us a bit uncomfortable) that you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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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