It is nice to see NEOWIZ (KOSDAQ:095660) The stock price is up 12% in a week. However, that can’t beat the less impressive returns of the past three years. In fact, the stock price is down 48% over the past three years, well below the market return.
While the stock is up 12% in the past week, long-term shareholders are still in the red, so let’s see what the fundamentals tell us.
Check out our latest analysis for NEOWIZ
While markets are a powerful pricing mechanism, share prices reflect not only underlying company performance but also investor sentiment. By comparing earnings per share (EPS) and share price changes over time, we can get a sense of how investor attitudes toward a company have changed over time.
During the three years that the share price fell, NEOWIZ’s earnings per share (EPS) fell by 0.9% each year. The 19% share price decline is actually steeper than the EPS decline. So it’s likely that the EPS decline has disappointed the market and investors are hesitant to buy. This increased caution is also reflected in the rather low P/E ratio, which stands at 6.44.
The image below shows how EPS has evolved over time (if you click on the image you can see greater detail).
We know that NEOWIZ has improved its bottom line recently, but will it also increase its revenue? free A report with analysts’ revenue forecasts should help you figure out whether EPS growth can be sustained.
A different perspective
While the broader market lost about 0.6% in the twelve months, NEOWIZ shareholders fared even worse, losing 47% (even including dividends). However, it could also simply be that the share price has been affected by general market fluctuations. It might be worth keeping an eye on the fundamentals in case a good opportunity arises. Long-term investors would not be so upset, having earned 6% each year over five years. It could be that the recent sell-off represents an opportunity, so it might be worth checking the fundamentals for signs of a long-term growth trend. It is always interesting to follow the share price movement over a longer period of time. But to better understand NEOWIZ, we need to consider many other factors. Case in point: We discovered 2 warning signs for NEOWIZ You should be aware of this and not ignore any of them.
Naturally NEOWIZ may not be the best stock to buy. You may want to see this free Collection of growth stocks.
Please note that the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on South Korean exchanges.
Valuation is complex, but we are here to simplify it.
Find out if NEOWIZ could be undervalued or overvalued with our detailed analysis, with Fair value estimates, potential risks, dividends, insider trading and the company’s financial condition.
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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.
