Is SurplusGLOBAL's (KOSDAQ:140070) Share Price Gain Of 116% Well Earned?

SurplusGLOBAL, Inc. (KOSDAQ:140070) shareholders have seen the share price descend 14% over the month. But that doesn't detract from the splendid returns of the last year. Indeed, the share price is up an impressive 116% in that time. So it is important to view the recent reduction in price through that lense. More important, going forward, is how the business itself is going.

View our latest analysis for SurplusGLOBAL

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.

SurplusGLOBAL was able to grow EPS by 138% in the last twelve months. This EPS growth is reasonably close to the 116% increase in the share price. That suggests that the market sentiment around the company hasn't changed much over that time. It makes intuitive sense that the share price and EPS would grow at similar rates.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

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

What about the Total Shareholder Return (TSR)?

Investors should note that there's a difference between SurplusGLOBAL's total shareholder return (TSR) and its share price change, which we've covered above. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. SurplusGLOBAL's TSR of 118% for the year exceeded its share price return, because it has paid dividends.

A Different Perspective

It's nice to see that SurplusGLOBAL shareholders have gained 118% (in total) over the last year. That gain actually surpasses the 2.5% TSR it generated (per year) over three years. The improving returns to shareholders suggests the stock is becoming more popular 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. Case in point: We've spotted 3 warning signs for SurplusGLOBAL you should be aware of, and 1 of them is significant.

Of course SurplusGLOBAL 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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