Korea District Heating (KRX:071320) shareholders are still up 69% over 1 year despite pulling back 19% in the past week

Korea District Heating Corp. (KRX:071320) shareholders have seen the share price descend 30% over the month. But that doesn't change the fact that the returns over the last year have been pleasing. After all, the share price is up a market-beating 69% in that time.

While this past week has detracted from the company's one-year return, let's look at the recent trends of the underlying business and see if the gains have been in alignment.

View our latest analysis for Korea District Heating

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During the last year Korea District Heating grew its earnings per share, moving from a loss to a profit.

The result looks like a strong improvement to us, so we're not surprised the market likes the growth. Generally speaking the profitability inflection point is a great time to research a company closely, lest you miss an opportunity to profit.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

It is of course excellent to see how Korea District Heating has grown profits over the years, but the future is more important for shareholders. If you are thinking of buying or selling Korea District Heating stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's good to see that Korea District Heating has rewarded shareholders with a total shareholder return of 69% in the last twelve months. That certainly beats the loss of about 0.7% per year over the last half decade. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. 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. Take risks, for example - Korea District Heating has 2 warning signs we think you should be aware of.

Of course Korea District Heating 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 South Korean exchanges.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.