Cube Entertainment’s (KOSDAQ:182360) compound annual growth rate (CAGR) of 17% exceeded the company’s earnings growth over the same five-year period

The most you can lose on a stock is 100% of your money (assuming you don’t use leverage). On the bright side, you can gain well over 100% if you buy shares in a high-quality company at the right price. Long term Cube Entertainment, Inc. (KOSDAQ:182360) Shareholders might be aware of this, as the stock is up 123% in five years. In the last week it has actually increased by 12%.

Let’s examine how the company’s fundamentals have played a role in driving long-term shareholder returns with a solid 7-day performance.

Check out our latest analysis for Cube Entertainment

While markets are a powerful pricing mechanism, stock prices reflect investor sentiment, not just underlying business performance. 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).

Over half a decade, Cube Entertainment managed to grow its earnings per share at 50% per year. This EPS growth is higher than the 17% average annual share price increase. So one could conclude that the broader market has become more cautious about the stock.

The graphic below shows how EPS has changed over time (discover the exact values ​​by clicking on the image).

It’s obviously great to see how Cube Entertainment has grown its profits over the years, but the future is more important to shareholders. In it, you can see how the company’s balance sheet has improved (or weakened) over time free interactive graphics.

A different perspective

Cube Entertainment investors had a difficult year, with a total loss of 4.5% versus a market gain of about 6.1%. However, keep in mind that even the best stocks sometimes underperform the market over a twelve-month period. On the bright side, long-term shareholders have made money, with gains of 17% per year over half a decade. 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. While it’s well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, take risks – Cube Entertainment did it 1 warning sign We think you should be aware of this.

Naturally Cube Entertainment may not be the best stock to buy. Maybe you would like 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.

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This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended as financial advice. It does not constitute 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 focused analysis based on fundamental data. Note that our analysis may not reflect the latest price-sensitive company announcements or qualitative material. Simply Wall St has no positions in any stocks mentioned.