Sejong Industrial (KRX:033530) Shareholders Have Enjoyed An Impressive 123% Share Price Gain

When you buy shares in a company, there is always a risk that the price drops to zero. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! For example, the Sejong Industrial Co., Ltd. (KRX:033530) share price has soared 123% return in just a single year. It's also up 19% in about a month. But the price may well have benefitted from a buoyant market, since stocks have gained 13% in the last thirty days. Also impressive, the stock is up 33% over three years, making long term shareholders happy, too.

View our latest analysis for Sejong Industrial

Because Sejong Industrial made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. 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 Sejong Industrial saw its revenue shrink by 4.3%. We're a little surprised to see the share price pop 123% in the last year. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. It's quite likely the revenue fall was already priced in, anyway.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

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

It's good to see that Sejong Industrial has rewarded shareholders with a total shareholder return of 124% in the last twelve months. Of course, that includes the dividend. That gain is better than the annual TSR over five years, which is 3%. 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. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that Sejong Industrial is showing 3 warning signs in our investment analysis , and 2 of those don't sit too well with us...

But note: Sejong 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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