Introducing Cheongbo Industrial (KOSDAQ:013720), The Stock That Soared 591% In The Last Year

It's been a soft week for Cheongbo Industrial. Co., Ltd (KOSDAQ:013720) shares, which are down 10%. But that isn't a problem when you consider how the share price has soared over the last year. In fact, it is up 591% in that time. So the recent fall isn't enough to negate the good performance. Of course, winners often do keep winning, so there may be more gains to come (if the business fundamentals stack up).

It really delights us to see such great share price performance for investors.

Check out our latest analysis for Cheongbo Industrial

Given that Cheongbo Industrial 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last year Cheongbo Industrial saw its revenue shrink by 27%. This is in stark contrast to the splendorous stock price, which has rocketed 591% since this time a year ago. It's pretty clear the market isn't basing its valuation on fundamental metrics like revenue. While this gain looks like speculative buying to us, sometimes speculation pays off.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

We're pleased to report that Cheongbo Industrial shareholders have received a total shareholder return of 591% over one year. That gain is better than the annual TSR over five years, which is 32%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Cheongbo Industrial better, we need to consider many other factors. To that end, you should learn about the 4 warning signs we've spotted with Cheongbo Industrial (including 2 which are significant) .

But note: Cheongbo Industrial may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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