Reflecting on SG&G's (KOSDAQ:040610) Share Price Returns Over The Last Five Years

SG&G Corporation (KOSDAQ:040610) shareholders will doubtless be very grateful to see the share price up 46% in the last quarter. But if you look at the last five years the returns have not been good. After all, the share price is down 34% in that time, significantly under-performing the market.

Check out our latest analysis for SG&G

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.

During the five years over which the share price declined, SG&G's earnings per share (EPS) dropped by 5.7% each year. This reduction in EPS is less than the 8% annual reduction in the share price. This implies that the market was previously too optimistic about the stock. The low P/E ratio of 6.95 further reflects this reticence.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

It might be well worthwhile taking a look at our free report on SG&G's earnings, revenue and cash flow.

A Different Perspective

SG&G shareholders are up 15% for the year. But that was short of the market average. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 6% endured over half a decade. So this might be a sign the business has turned its fortunes around. It's always interesting to track share price performance over the longer term. But to understand SG&G better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for SG&G you should be aware of, and 1 of them is a bit concerning.

We will like SG&G 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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