EcoPro BM's (KOSDAQ:247540) investors will be pleased with their impressive 197% return over the last five years

When you buy a stock there is always a possibility that it could drop 100%. But when you pick a company that is really flourishing, you can make more than 100%. One great example is EcoPro BM Co., Ltd. (KOSDAQ:247540) which saw its share price drive 191% higher over five years. In more good news, the share price has risen 8.9% in thirty days. But this could be related to good market conditions -- stocks in its market are up 5.0% in the last month.

With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Because EcoPro BM 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last 5 years EcoPro BM saw its revenue grow at 31% per year. Even measured against other revenue-focussed companies, that's a good result. Meanwhile, its share price performance certainly reflects the strong growth, given the share price grew at 24% per year, compound, during the period. This suggests the market has well and truly recognized the progress the business has made. To our minds that makes EcoPro BM worth investigating - it may have its best days ahead.

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

EcoPro BM is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. So it makes a lot of sense to check out what analysts think EcoPro BM will earn in the future (free analyst consensus estimates)

What About The Total Shareholder Return (TSR)?

Investors should note that there's a difference between EcoPro BM's total shareholder return (TSR) and its share price change, which we've covered above. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Its history of dividend payouts mean that EcoPro BM's TSR of 197% over the last 5 years is better than the share price return.

A Different Perspective

Investors in EcoPro BM had a tough year, with a total loss of 40%, against a market gain of about 16%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 24%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand EcoPro BM better, we need to consider many other factors. For instance, we've identified 2 warning signs for EcoPro BM (1 doesn't sit too well with us) that you should be aware of.

But note: EcoPro BM 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 South Korean exchanges.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.