Introducing KNK Holdings (HKG:8039), The Stock That Zoomed 162% In The Last Year
KNK Holdings Limited (HKG:8039) shareholders have seen the share price descend 11% over the month. But that doesn't change the fact that the returns over the last year have been very strong. During that period, the share price soared a full 162%. So some might not be surprised to see the price retrace some. Investors should be wondering whether the business itself has the fundamental value required to continue to drive gains.
See our latest analysis for KNK 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...' 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 KNK Holdings saw its earnings per share (EPS) drop below zero. While this may prove temporary, we'd consider it a negative, so we would not have expected to see the share price up. We might get a clue to explain the share price move by looking to other metrics.
However the year on year revenue growth of 39% would help. We do see some companies suppress earnings in order to accelerate revenue growth.
The graphic below shows how revenue and earnings have changed as management guided the business forward. If you want to see cashflow, you can click on the chart.
This free interactive report on KNK Holdings's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
KNK Holdings shareholders should be happy with the total gain of 162% over the last twelve months. We regret to report that the share price is down 5.1% over ninety days. Shorter term share price moves often don't signify much about the business itself. Most investors take the time to check the data on insider transactions. You can click here to see if insiders have been buying or selling.
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on HK exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
