Stock Analysis

Introducing Korea Circuit (KRX:007810), A Stock That Climbed 29% In The Last Three Years

KOSE:A007810
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Thanks in no small measure to Vanguard founder Jack Bogle, it's easy buy a low cost index fund, which should provide the average market return. But you can make better returns by buying undervalued shares. To wit, Korea Circuit Co., Ltd. (KRX:007810) shares are up 29% in three years, besting the market return. Zooming in, the stock is up a respectable 18% in the last year.

See our latest analysis for Korea Circuit

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. 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.

Korea Circuit became profitable within the last three years. So we would expect a higher share price over the period.

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

earnings-per-share-growth
KOSE:A007810 Earnings Per Share Growth February 10th 2021

We know that Korea Circuit has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Korea Circuit will grow revenue in the future.

A Different Perspective

Korea Circuit shareholders are up 18% for the year. But that was short of the market average. On the bright side, that's still a gain, and it's actually better than the average return of 5% over half a decade This could indicate that the company is winning over new investors, as it pursues its strategy. Before deciding if you like the current share price, check how Korea Circuit scores on these 3 valuation metrics.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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 here to simplify it.

Discover if Korea Circuit might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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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