Investors in Woori Technology (KOSDAQ:032820) have seen strong returns of 138% over the past five years

It hasn't been the best quarter for Woori Technology, Inc. (KOSDAQ:032820) shareholders, since the share price has fallen 17% in that time. But that doesn't change the fact that shareholders have received really good returns over the last five years. In fact, the share price is 138% higher today. So while it's never fun to see a share price fall, it's important to look at a longer time horizon. Only time will tell if there is still too much optimism currently reflected in the share price.

So let's assess the underlying fundamentals over the last 5 years and see if they've moved in lock-step with shareholder returns.

View our latest analysis for Woori Technology

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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 five years of share price growth, Woori Technology moved from a loss to profitability. Sometimes, the start of profitability is a major inflection point that can signal fast earnings growth to come, which in turn justifies very strong share price gains.

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

We know that Woori Technology has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling Woori Technology stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We're pleased to report that Woori Technology shareholders have received a total shareholder return of 59% over one year. That's better than the annualised return of 19% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Woori Technology better, we need to consider many other factors. Even so, be aware that Woori Technology is showing 3 warning signs in our investment analysis , and 1 of those is concerning...

Of course Woori Technology 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 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.