Korshynov Mining Plant's (MCX:KOGK) Stock Price Has Reduced 49% In The Past Three Years

By
Simply Wall St
Published
March 15, 2021
MISX:KOGK
Source: Shutterstock

In order to justify the effort of selecting individual stocks, it's worth striving to beat the returns from a market index fund. But its virtually certain that sometimes you will buy stocks that fall short of the market average returns. We regret to report that long term Korshynov Mining Plant Public Joint Stock Company (MCX:KOGK) shareholders have had that experience, with the share price dropping 49% in three years, versus a market return of about 63%.

Check out our latest analysis for Korshynov Mining Plant

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. 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.

Korshynov Mining Plant saw its EPS decline at a compound rate of 13% per year, over the last three years. The share price decline of 20% is actually steeper than the EPS slippage. So it's likely that the EPS decline has disappointed the market, leaving investors hesitant to buy. This increased caution is also evident in the rather low P/E ratio, which is sitting at 3.98.

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

earnings-per-share-growth
MISX:KOGK Earnings Per Share Growth March 16th 2021

Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.

A Different Perspective

Korshynov Mining Plant shareholders are up 29% for the year. Unfortunately this falls short of the market return. On the bright side, that's still a gain, and it's actually better than the average return of 4% over half a decade It is possible that returns will improve along with the business fundamentals. It's always interesting to track share price performance over the longer term. But to understand Korshynov Mining Plant better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Korshynov Mining Plant , and understanding them should be part of your investment process.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on RU exchanges.

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