Can You Imagine How Genians' (KOSDAQ:263860) Shareholders Feel About The 25% Share Price Increase?

We believe investing is smart because history shows that stock markets go higher in the long term. But if you choose that path, you're going to buy some stocks that fall short of the market. Unfortunately for shareholders, while the Genians, Inc. (KOSDAQ:263860) share price is up 25% in the last year, that falls short of the market return. Unfortunately the longer term returns are not so good, with the stock falling 6.2% in the last three years.

See our latest analysis for Genians

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 imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Genians was able to grow EPS by 34% in the last twelve months. It's fair to say that the share price gain of 25% did not keep pace with the EPS growth. Therefore, it seems the market isn't as excited about Genians as it was before. This could be an opportunity.

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

It might be well worthwhile taking a look at our free report on Genians' earnings, revenue and cash flow.

A Different Perspective

Genians produced a TSR of 25% over the last year. Unfortunately this falls short of the market return of around 44%. The silver lining is that the recent rise is far preferable to the annual loss of 1.7% that shareholders have suffered over the last three years. We hope the turnaround in fortunes continues. It's always interesting to track share price performance over the longer term. But to understand Genians better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Genians (of which 1 is a bit unpleasant!) you should know about.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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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