Shareholders Are Thrilled That The DAE-IL (KRX:092200) Share Price Increased 151%

Unless you borrow money to invest, the potential losses are limited. But if you pick the right business to buy shares in, you can make more than you can lose. Take, for example DAE-IL Corporation (KRX:092200). Its share price is already up an impressive 151% in the last twelve months. Shareholders are also celebrating an even better 250% rise, over the last three months. Zooming out, the stock is actually down 45% in the last three years.

See our latest analysis for DAE-IL

Because DAE-IL 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. Shareholders of unprofitable companies usually expect strong revenue growth. 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.

DAE-IL actually shrunk its revenue over the last year, with a reduction of 18%. We're a little surprised to see the share price pop 151% in the last year. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. Of course, it could be that the market expected this revenue drop.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

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

A Different Perspective

It's good to see that DAE-IL has rewarded shareholders with a total shareholder return of 151% in the last twelve months. There's no doubt those recent returns are much better than the TSR loss of 6% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. 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. For example, we've discovered 2 warning signs for DAE-IL (1 is potentially serious!) that you should be aware of before investing here.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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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