Stock Analysis

Introducing KSS Line (KRX:044450), A Stock That Climbed 32% In The Last Year

KOSE:A044450
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These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). For example, the KSS Line Ltd. (KRX:044450) share price is up 32% in the last year, clearly besting the market return of around 25% (not including dividends). That's a solid performance by our standards! The longer term returns have not been as good, with the stock price only 11% higher than it was three years ago.

Check out our latest analysis for KSS Line

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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).

During the last year KSS Line grew its earnings per share (EPS) by 89%. It's fair to say that the share price gain of 32% did not keep pace with the EPS growth. Therefore, it seems the market isn't as excited about KSS Line as it was before. This could be an opportunity. The caution is also evident in the lowish P/E ratio of 8.41.

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

earnings-per-share-growth
KOSE:A044450 Earnings Per Share Growth November 27th 2020

This free interactive report on KSS Line's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, KSS Line's TSR for the last year was 36%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

We're pleased to report that KSS Line shareholders have received a total shareholder return of 36% over one year. Of course, that includes the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 6% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. Before forming an opinion on KSS Line you might want to consider these 3 valuation metrics.

We will like KSS Line 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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Valuation is complex, but we're helping make it simple.

Find out whether KSS Line is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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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