The Sangshin Electronics (KOSDAQ:263810) Share Price Is Up 37% And Shareholders Are Holding On

There's no doubt that investing in the stock market is a truly brilliant way to build wealth. But not every stock you buy will perform as well as the overall market. Unfortunately for shareholders, while the Sangshin Electronics Co., Ltd. (KOSDAQ:263810) share price is up 37% in the last year, that falls short of the market return. On the other hand, longer term shareholders have had a tougher run, with the stock falling 15% in three years.

Check out our latest analysis for Sangshin Electronics

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just 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.

During the last year, Sangshin Electronics actually saw its earnings per share drop 11%.

Given the share price gain, we doubt the market is measuring progress with EPS. Indeed, when EPS is declining but the share price is up, it often means the market is considering other factors.

Revenue was pretty stable on last year, so deeper research might be needed to explain the share price rise.

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

This free interactive report on Sangshin Electronics' balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Sangshin Electronics produced a TSR of 37% over the last year. It's always nice to make money but this return falls short of the market return which was about 43% for the year. The silver lining is that the recent rise is far preferable to the annual loss of 4% that shareholders have suffered over the last three years. We hope the turnaround in fortunes continues. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Sangshin Electronics (of which 1 is significant!) you should know about.

We will like Sangshin Electronics better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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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