If You Had Bought Motrex (KOSDAQ:118990) Stock A Year Ago, You Could Pocket A 258% Gain Today

Unless you borrow money to invest, the potential losses are limited. But if you pick the right stock, you can make a lot more than 100%. Take, for example Motrex Co., Ltd (KOSDAQ:118990). Its share price is already up an impressive 258% in the last twelve months. On top of that, the share price is up 20% in about a quarter. But this move may well have been assisted by the reasonably buoyant market (up 33% in 90 days). However, the longer term returns haven't been so impressive, with the stock up just 7.3% in the last three years.

Check out our latest analysis for Motrex

Given that Motrex 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. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last year Motrex saw its revenue grow by 25%. That's a fairly respectable growth rate. While that revenue growth is pretty good the share price performance outshone it, with a lift of 258% as mentioned above. Given that the business has made good progress on the top line, it would be worth taking a look at its path to profitability. Of course, we are always cautious about succumbing to 'fear of missing out' when a stock has shot up strongly.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

This free interactive report on Motrex's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Pleasingly, Motrex's total shareholder return last year was 258%. That gain actually surpasses the 3% TSR it generated (per year) over three years. Given the track record of solid returns over varying time frames, it might be worth putting Motrex on your watchlist. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that Motrex is showing 2 warning signs in our investment analysis , you should know about...

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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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