Stock Analysis

Introducing Doosan Heavy Industries & Construction (KRX:034020), The Stock That Zoomed 153% In The Last Year

KOSE:A034020
Source: Shutterstock

Doosan Heavy Industries & Construction Co., Ltd. (KRX:034020) shareholders might be concerned after seeing the share price drop 12% in the last month. But that doesn't detract from the splendid returns of the last year. We're very pleased to report the share price shot up 153% in that time. So some might not be surprised to see the price retrace some. More important, going forward, is how the business itself is going.

See our latest analysis for Doosan Heavy Industries & Construction

Given that Doosan Heavy Industries & Construction 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. 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 Doosan Heavy Industries & Construction saw its revenue grow by 0.3%. That's not great considering the company is losing money. So we wouldn't have expected the share price to rise by 153%. We're happy that investors have made money, though we wonder if the increase will be sustained. It's quite likely that the market is considering other factors, not just revenue growth.

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

earnings-and-revenue-growth
KOSE:A034020 Earnings and Revenue Growth December 16th 2020

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.

What about the Total Shareholder Return (TSR)?

We've already covered Doosan Heavy Industries & Construction's share price action, but we should also mention its total shareholder return (TSR). The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Dividends have been really beneficial for Doosan Heavy Industries & Construction shareholders, and that cash payout contributed to why its TSR of 170%, over the last year, is better than the share price return.

A Different Perspective

We're pleased to report that Doosan Heavy Industries & Construction shareholders have received a total shareholder return of 170% over one year. That certainly beats the loss of about 4% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. 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. Take risks, for example - Doosan Heavy Industries & Construction has 1 warning sign we think you should be aware of.

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.

If you’re looking to trade Doosan Heavy Industries & Construction, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted


New: Manage All Your Stock Portfolios in One Place

We've created the ultimate portfolio companion for stock investors, and it's free.

• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks

Try a Demo Portfolio for Free

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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020


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