Stock Analysis

If You Had Bought New Power PlasmaLtd (KOSDAQ:144960) Stock A Year Ago, You Could Pocket A 26% Gain Today

KOSDAQ:A144960
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There's no doubt that investing in the stock market is a truly brilliant way to build wealth. But not every stock you buy will perform as well as the overall market. Unfortunately for shareholders, while the New Power Plasma Co.,Ltd (KOSDAQ:144960) share price is up 26% in the last year, that falls short of the market return. However, the longer term returns haven't been so impressive, with the stock up just 8.3% in the last three years.

See our latest analysis for New Power PlasmaLtd

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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.

During the last year New Power PlasmaLtd grew its earnings per share (EPS) by 113%. This EPS growth is significantly higher than the 26% increase in the share price. So it seems like the market has cooled on New Power PlasmaLtd, despite the growth. Interesting.

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

earnings-per-share-growth
KOSDAQ:A144960 Earnings Per Share Growth February 13th 2021

We know that New Power PlasmaLtd 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

New Power PlasmaLtd produced a TSR of 26% over the last year. While you don't go broke making a profit, this return was actually lower than the average market return of about 43%. On the bright side that gain is actually better than the average return of 4% over the last three years, implying that the company is doing better recently. If the business can justify the share price gain with improving fundamental data, then there could be more gains to come. 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. Take risks, for example - New Power PlasmaLtd has 2 warning signs (and 1 which is a bit unpleasant) we think you should know about.

We will like New Power PlasmaLtd better if we see some big insider buys. While we wait, check out this free list of growing companies 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 KR exchanges.

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Valuation is complex, but we're helping make it simple.

Find out whether New Power Plasma is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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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