Shareholders Are Thrilled That The EcoBio Holdings (KOSDAQ:038870) Share Price Increased 114%

Unfortunately, investing is risky - companies can and do go bankrupt. But when you pick a company that is really flourishing, you can make more than 100%. For example, the EcoBio Holdings Co., Ltd. (KOSDAQ:038870) share price had more than doubled in just one year - up 114%. On top of that, the share price is up 37% in about a quarter. However, the longer term returns haven't been so impressive, with the stock up just 4.3% in the last three years.

See our latest analysis for EcoBio Holdings

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 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 EcoBio Holdings grew its earnings per share, moving from a loss to a profit.

When a company is just on the edge of profitability it can be well worth considering other metrics in order to more precisely gauge growth (and therefore understand share price movements).

Unfortunately EcoBio Holdings' fell 13% over twelve months. So the fundamental metrics don't provide an obvious explanation for the share price gain.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

Take a more thorough look at EcoBio Holdings' financial health with this free report on its balance sheet.

A Different Perspective

We're pleased to report that EcoBio Holdings shareholders have received a total shareholder return of 114% over one year. There's no doubt those recent returns are much better than the TSR loss of 8% per year over five years. This makes us a little wary, but the business might have turned around its fortunes. 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. Even so, be aware that EcoBio Holdings is showing 2 warning signs in our investment analysis , you should know about...

Of course EcoBio Holdings may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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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