VINA TECHLtd (KOSDAQ:126340) shareholders are still up 65% over 5 years despite pulling back 11% in the past week

It hasn't been the best quarter for VINA TECH Co.,Ltd. (KOSDAQ:126340) shareholders, since the share price has fallen 28% in that time. Looking further back, the stock has generated good profits over five years. It has returned a market beating 65% in that time. While the long term returns are impressive, we do have some sympathy for those who bought more recently, given the 46% drop, in the last year.

Although VINA TECHLtd has shed ₩18b from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.

Check out our latest analysis for VINA TECHLtd

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.

VINA TECHLtd's earnings per share are down 15% per year, despite strong share price performance over five years.

This means it's unlikely the market is judging the company based on earnings growth. Because earnings per share don't seem to match up with the share price, we'll take a look at other metrics instead.

On the other hand, VINA TECHLtd's revenue is growing nicely, at a compound rate of 7.8% over the last five years. In that case, the company may be sacrificing current earnings per share to drive growth.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

Take a more thorough look at VINA TECHLtd's financial health with this free report on its balance sheet.

A Different Perspective

While the broader market lost about 3.3% in the twelve months, VINA TECHLtd shareholders did even worse, losing 46%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Longer term investors wouldn't be so upset, since they would have made 11%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand VINA TECHLtd better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with VINA TECHLtd (including 1 which is significant) .

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation).

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.