The EnexLtd (KRX:011090) Share Price Is Up 103% And Shareholders Are Boasting About It

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 Enex Co.,Ltd (KRX:011090) share price has soared 103% in the last year. Most would be very happy with that, especially in just one year! Shareholders are also celebrating an even better 113% rise, over the last three months. However, the longer term returns haven't been so impressive, with the stock up just 18% in the last three years.

View our latest analysis for EnexLtd

Because EnexLtd 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

EnexLtd actually shrunk its revenue over the last year, with a reduction of 38%. We're a little surprised to see the share price pop 103% in the last year. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. It's quite likely the revenue fall was already priced in, anyway.

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

If you are thinking of buying or selling EnexLtd stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's good to see that EnexLtd has rewarded shareholders with a total shareholder return of 103% in the last twelve months. Notably the five-year annualised TSR loss of 7% per year compares very unfavourably with the recent share price performance. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand EnexLtd better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for EnexLtd you should be aware of, and 1 of them is significant.

But note: EnexLtd 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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