Hansol IONESLtd (KOSDAQ:114810) shareholders are still up 142% over 5 years despite pulling back 12% in the past week

The last three months have been tough on Hansol IONES Co.,Ltd. (KOSDAQ:114810) shareholders, who have seen the share price decline a rather worrying 36%. But that doesn't change the fact that the returns over the last five years have been very strong. It's fair to say most would be happy with 142% the gain in that time. To some, the recent pullback wouldn't be surprising after such a fast rise. Of course, that doesn't necessarily mean it's cheap now.

While the stock has fallen 12% this week, it's worth focusing on the longer term and seeing if the stocks historical returns have been driven by the underlying fundamentals.

Check out our latest analysis for Hansol IONESLtd

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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 half decade, Hansol IONESLtd became profitable. Sometimes, the start of profitability is a major inflection point that can signal fast earnings growth to come, which in turn justifies very strong share price gains. 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. In fact, the Hansol IONESLtd stock price is 21% lower in the last three years. During the same period, EPS grew by 6.9% each year. So there seems to be a mismatch between the positive EPS growth and the change in the share price, which is down -7% per year.

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

We know that Hansol IONESLtd has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Hansol IONESLtd will grow revenue in the future.

A Different Perspective

While the broader market gained around 11% in the last year, Hansol IONESLtd shareholders lost 17%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn't be so upset, since they would have made 19%, 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. Before deciding if you like the current share price, check how Hansol IONESLtd scores on these 3 valuation metrics.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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.