Can You Imagine How Wonik Ips' (KOSDAQ:240810) Shareholders Feel About The 35% Share Price Increase?

By buying an index fund, investors can approximate the average market return. But many of us dare to dream of bigger returns, and build a portfolio ourselves. Just take a look at Wonik Ips Co., Ltd (KOSDAQ:240810), which is up 35%, over three years, soundly beating the market return of 24% (not including dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 23% in the last year.

View our latest analysis for Wonik Ips

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Wonik Ips was able to grow its EPS at 7.6% per year over three years, sending the share price higher. This EPS growth is lower than the 11% 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. It is quite common to see investors become enamoured with a business, after a few years of solid progress.

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

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

A Different Perspective

Over the last year Wonik Ips shareholders have received a TSR of 23%. Unfortunately this falls short of the market return of around 45%. On the other hand, the TSR over three years was worse, at just 11% per year. This suggests the company's position is improving. If the share price is up as a result of improved business performance, then this kind of improvement may be sustained. It's always interesting to track share price performance over the longer term. But to understand Wonik Ips better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Wonik Ips you should know about.

If you are like me, then you will not want to miss this free list of growing companies that insiders are 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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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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