FNC ADD CULTURE (KOSDAQ:063440) Shareholders Have Enjoyed An Impressive 102% Share Price Gain

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 FNC ADD CULTURE. Co., Ltd. (KOSDAQ:063440) which saw its share price drive 102% higher over five years. On top of that, the share price is up 37% in about a quarter. But this move may well have been assisted by the reasonably buoyant market (up 27% in 90 days).

See our latest analysis for FNC ADD CULTURE

FNC ADD CULTURE isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last 5 years FNC ADD CULTURE saw its revenue grow at 20% per year. That's well above most pre-profit companies. So it's not entirely surprising that the share price reflected this performance by increasing at a rate of 15% per year, in that time. So it seems likely that buyers have paid attention to the strong revenue growth. To our minds that makes FNC ADD CULTURE 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).

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

FNC ADD CULTURE shareholders have received returns of 42% over twelve months, which isn't far from the general market return. That gain looks pretty satisfying, and it is even better than the five-year TSR of 15% per year. Even if the share price growth slows down from here, there's a good chance that this is business worth watching in the long term. It's always interesting to track share price performance over the longer term. But to understand FNC ADD CULTURE better, we need to consider many other factors. For instance, we've identified 2 warning signs for FNC ADD CULTURE (1 is a bit concerning) that you should be aware of.

But note: FNC ADD CULTURE 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 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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