HJ Shipbuilding & Construction (KRX:097230) shareholder returns have been solid, earning 133% in 1 year

Unless you borrow money to invest, the potential losses are limited. But when you pick a company that is really flourishing, you can make more than 100%. For example, the HJ Shipbuilding & Construction Co., Ltd. (KRX:097230) share price has soared 133% in the last 1 year. Most would be very happy with that, especially in just one year! It's also good to see the share price up 33% over the last quarter. But this move may well have been assisted by the reasonably buoyant market (up 18% in 90 days). However, the longer term returns haven't been so impressive, with the stock up just 14% in the last three years.

On the back of a solid 7-day performance, let's check what role the company's fundamentals have played in driving long term shareholder returns.

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Because HJ Shipbuilding & Construction 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 desire strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last year HJ Shipbuilding & Construction saw its revenue shrink by 18%. We're a little surprised to see the share price pop 133% in the last year. It just goes to show the market doesn't always pay attention to the reported numbers. It's quite likely the revenue fall was already priced in, anyway.

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

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

We're pleased to report that HJ Shipbuilding & Construction shareholders have received a total shareholder return of 133% over one year. That's better than the annualised return of 7% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand HJ Shipbuilding & Construction better, we need to consider many other factors. Take risks, for example - HJ Shipbuilding & Construction has 2 warning signs (and 1 which is significant) we think you should know about.

Of course HJ Shipbuilding & Construction may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on South Korean exchanges.

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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.