HAESUNG DS' (KRX:195870) earnings have declined over year, contributing to shareholders 57% loss

HAESUNG DS Co., Ltd. (KRX:195870) shareholders should be happy to see the share price up 16% in the last week. But that's small comfort given the dismal price performance over the last year. Like a receding glacier in a warming world, the share price has melted 58% in that period. Some might say the recent bounce is to be expected after such a bad drop. You could argue that the sell-off was too severe.

While the stock has risen 16% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.

See our latest analysis for HAESUNG DS

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Unfortunately HAESUNG DS reported an EPS drop of 41% for the last year. This reduction in EPS is not as bad as the 58% share price fall. This suggests the EPS fall has made some shareholders more nervous about the business. The P/E ratio of 7.00 also points to the negative market sentiment.

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

Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.

A Different Perspective

We regret to report that HAESUNG DS shareholders are down 57% for the year (even including dividends). Unfortunately, that's worse than the broader market decline of 3.5%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Longer term investors wouldn't be so upset, since they would have made 12%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. 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. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for HAESUNG DS (of which 1 shouldn't be ignored!) you should know about.

But note: HAESUNG DS may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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.