If You Had Bought Englewood Lab (KOSDAQ:950140) Shares A Year Ago You'd Have Earned 106% Returns

Unless you borrow money to invest, the potential losses are limited. But if you pick the right business to buy shares in, you can make more than you can lose. Take, for example Englewood Lab, Inc. (KOSDAQ:950140). Its share price is already up an impressive 106% in the last twelve months. It's also good to see the share price up 24% over the last quarter. Having said that, the longer term returns aren't so impressive, with stock gaining just 12% in three years.

See our latest analysis for Englewood Lab

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

During the last year Englewood Lab grew its earnings per share, moving from a loss to a profit.

When a company has just transitioned to profitability, earnings per share growth is not always the best way to look at the share price action.

However the year on year revenue growth of 6.0% would help. We do see some companies suppress earnings in order to accelerate revenue growth.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

It is of course excellent to see how Englewood Lab has grown profits over the years, but the future is more important for shareholders. Take a more thorough look at Englewood Lab's financial health with this free report on its balance sheet.

A Different Perspective

Pleasingly, Englewood Lab's total shareholder return last year was 106%. That's better than the annualized TSR of 4% over the last three years. These improved returns 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 Englewood Lab better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Englewood Lab you should be aware of.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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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