CJ Logistics' (KRX:000120) Stock Price Has Reduced 15% In The Past Five Years

While it may not be enough for some shareholders, we think it is good to see the CJ Logistics Corporation (KRX:000120) share price up 13% in a single quarter. But over the last half decade, the stock has not performed well. After all, the share price is down 15% in that time, significantly under-performing the market.

Check out our latest analysis for CJ Logistics

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Looking back five years, both CJ Logistics' share price and EPS declined; the latter at a rate of 8.0% per year. This fall in the EPS is worse than the 3% compound annual share price fall. The relatively muted share price reaction might be because the market expects the business to turn around. With a P/E ratio of 59.01, it's fair to say the market sees a brighter future for the business.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

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

A Different Perspective

CJ Logistics shareholders gained a total return of 3.1% during the year. Unfortunately this falls short of the market return. But at least that's still a gain! Over five years the TSR has been a reduction of 3% per year, over five years. So this might be a sign the business has turned its fortunes around. 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. For example, we've discovered 2 warning signs for CJ Logistics (1 is concerning!) that you should be aware of before investing here.

If you are like me, then you will not want to miss this free list of growing companies that insiders are 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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