The KNJ (KOSDAQ:272110) Share Price Has Gained 36% And Shareholders Are Hoping For More

KNJ Co., Ltd. (KOSDAQ:272110) shareholders might be concerned after seeing the share price drop 18% in the last month. But at least the stock is up over the last year. But to be blunt its return of 36% fall short of what you could have got from an index fund (around 44%).

See our latest analysis for KNJ

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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).

During the last year KNJ saw its earnings per share (EPS) drop below zero. While some may see this as temporary, we're a skeptical bunch, and so we're a little surprised to see the share price go up. It may be that the company has done well on other metrics.

Unfortunately KNJ's fell 21% over twelve months. So using a snapshot of key business metrics doesn't give us a good picture of why the market is bidding up the stock.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

This free interactive report on KNJ's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

We're happy to report that KNJ are up 36% over the year. The bad news is that's no better than the average market return, which was roughly 44%. That's a lot better than the more recent three month gain of 3.7%, implying that share price has plateaued recently, for now. It seems likely the market is waiting on fundamental developments with the business before pushing the share price higher (or lower). I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 5 warning signs for KNJ (2 don't sit too well with us!) that you should be aware of before investing here.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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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