Nature and Environment (KOSDAQ:043910) Shareholders Have Enjoyed A 39% Share Price Gain

If you want to compound wealth in the stock market, you can do so by buying an index fund. But investors can boost returns by picking market-beating companies to own shares in. For example, the Nature and Environment Co., Ltd. (KOSDAQ:043910) share price is up 39% in the last year, clearly besting the market return of around 29% (not including dividends). So that should have shareholders smiling. Zooming out, the stock is actually down 22% in the last three years.

View our latest analysis for Nature and Environment

Nature and Environment isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. 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.

Nature and Environment grew its revenue by 9.5% last year. That's not great considering the company is losing money. In keeping with the revenue growth, the share price gained 39% in that time. While not a huge gain tht seems pretty reasonable. Given the market doesn't seem too excited about the stock, a closer look at the financial data could pay off, if you can find indications of a stronger growth trend in the future.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

Take a more thorough look at Nature and Environment's financial health with this free report on its balance sheet.

A Different Perspective

It's nice to see that Nature and Environment shareholders have received a total shareholder return of 39% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 1.7% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand Nature and Environment better, we need to consider many other factors. For instance, we've identified 1 warning sign for Nature and Environment that you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will 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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