The Marumitsu (TYO:8256) Share Price Has Gained 87% And Shareholders Are Hoping For More

Some Marumitsu Co., Ltd. (TYO:8256) shareholders are probably rather concerned to see the share price fall 35% over the last three months. But looking back over the last year, the returns have actually been rather pleasing! After all, the share price is up a market-beating 87% in that time.

View our latest analysis for Marumitsu

Given that Marumitsu didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last year Marumitsu saw its revenue shrink by 19%. The stock is up 87% in that time, a fine performance given the revenue drop. To us that means that there isn't a lot of correlation between the past revenue performance and the share price, but a closer look at analyst forecasts and the bottom line may well explain a lot.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

It's good to see that Marumitsu has rewarded shareholders with a total shareholder return of 87% in the last twelve months. That gain is better than the annual TSR over five years, which is 1.1%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand Marumitsu better, we need to consider many other factors. Take risks, for example - Marumitsu has 4 warning signs (and 1 which is a bit unpleasant) we think you should know about.

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

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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. 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.
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