Stock Analysis

The GaeaSoft (KOSDAQ:051160) Share Price Has Soared 587%, Delighting Many Shareholders

KOSDAQ:A051160
Source: Shutterstock

Buying shares in the best businesses can build meaningful wealth for you and your family. While the best companies are hard to find, but they can generate massive returns over long periods. Don't believe it? Then look at the GaeaSoft Corp. (KOSDAQ:051160) share price. It's 587% higher than it was five years ago. If that doesn't get you thinking about long term investing, we don't know what will. Better yet, the share price has risen 18% in the last week.

It really delights us to see such great share price performance for investors.

View our latest analysis for GaeaSoft

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

During the last half decade, GaeaSoft became profitable. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

earnings-per-share-growth
KOSDAQ:A051160 Earnings Per Share Growth November 19th 2020

We know that GaeaSoft has improved its bottom line over the last three years, but what does the future have in store? It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

It's nice to see that GaeaSoft shareholders have received a total shareholder return of 198% over the last year. That gain is better than the annual TSR over five years, which is 47%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand GaeaSoft better, we need to consider many other factors. Even so, be aware that GaeaSoft is showing 3 warning signs in our investment analysis , 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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