Stock Analysis

Introducing FINEDIGITAL (KOSDAQ:038950), A Stock That Climbed 93% In The Last Year

KOSDAQ:A038950
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If you want to compound wealth in the stock market, you can do so by buying an index fund. But you can significantly boost your returns by picking above-average stocks. For example, the FINEDIGITAL Inc. (KOSDAQ:038950) share price is up 93% in the last year, clearly besting the market return of around 44% (not including dividends). So that should have shareholders smiling. It is also impressive that the stock is up 32% over three years, adding to the sense that it is a real winner.

View our latest analysis for FINEDIGITAL

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

FINEDIGITAL went from making a loss to reporting a profit, in the last year.

When a company is just on the edge of profitability it can be well worth considering other metrics in order to more precisely gauge growth (and therefore understand share price movements).

We doubt the modest 0.7% dividend yield is doing much to support the share price. We think that the revenue growth of 13% could have some investors interested. We do see some companies suppress earnings in order to accelerate revenue growth.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

earnings-and-revenue-growth
KOSDAQ:A038950 Earnings and Revenue Growth January 26th 2021

If you are thinking of buying or selling FINEDIGITAL stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We're pleased to report that FINEDIGITAL shareholders have received a total shareholder return of 95% over one year. Of course, that includes the dividend. That's better than the annualised return of 11% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we've identified 3 warning signs for FINEDIGITAL that you should be aware of.

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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Valuation is complex, but we're helping make it simple.

Find out whether FINEDIGITAL is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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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