Does EXEM's (KOSDAQ:205100) Share Price Gain of 39% Match Its Business Performance?

Diversification is a key tool for dealing with stock price volatility. But if you're going to beat the market overall, you need to have individual stocks that outperform. EXEM Co., Ltd. (KOSDAQ:205100) has done well over the last year, with the stock price up 39% beating the market return of 34% (not including dividends). On the other hand, longer term shareholders have had a tougher run, with the stock falling 5.9% in three years.

Check out our latest analysis for EXEM

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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).

EXEM was able to grow EPS by 100% in the last twelve months. This EPS growth is significantly higher than the 39% increase in the share price. Therefore, it seems the market isn't as excited about EXEM as it was before. This could be an opportunity.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

Dive deeper into EXEM's key metrics by checking this interactive graph of EXEM's earnings, revenue and cash flow.

A Different Perspective

EXEM shareholders have received returns of 39% over twelve months, which isn't far from the general market return. To take a positive view, the gain is pleasing, and it sure beats annualized TSR loss of 2%, which was endured over half a decade. While 'turnarounds seldom turn' there are green shoots for EXEM. It's always interesting to track share price performance over the longer term. But to understand EXEM better, we need to consider many other factors. For example, we've discovered 1 warning sign for EXEM that you should be aware of before investing here.

Of course EXEM may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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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