Suprema's (KOSDAQ:236200) underlying earnings growth outpaced the return generated for shareholders over the past year

The Suprema Inc. (KOSDAQ:236200) share price has had a bad week, falling 12%. While that might be a setback, it doesn't negate the nice returns received over the last twelve months. To wit, it had solidly beat the market, up 19%.

Although Suprema has shed ₩25b from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.

View our latest analysis for Suprema

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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.

Suprema was able to grow EPS by 72% in the last twelve months. This EPS growth is significantly higher than the 19% increase in the share price. So it seems like the market has cooled on Suprema, despite the growth. Interesting. This cautious sentiment is reflected in its (fairly low) P/E ratio of 6.04.

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

We know that Suprema has improved its bottom line over the last three years, but what does the future have in store? Take a more thorough look at Suprema's financial health with this free report on its balance sheet.

A Different Perspective

It's nice to see that Suprema shareholders have received a total shareholder return of 19% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 1.5% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. Is Suprema cheap compared to other companies? These 3 valuation measures might help you decide.

Of course Suprema 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.