Is hyungji Elite's (KRX:093240) Share Price Gain Of 220% Well Earned?

Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right business to buy shares in, you can make more than you can lose. For example, the hyungji Elite Co., Ltd. (KRX:093240) share price had more than doubled in just one year - up 220%. Also pleasing for shareholders was the 47% gain in the last three months. But this could be related to the strong market, which is up 27% in the last three months. In contrast, the longer term returns are negative, since the share price is 20% lower than it was three years ago.

View our latest analysis for hyungji Elite

Given that hyungji Elite only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. It would be hard to believe in a more profitable future without growing revenues.

In the last year hyungji Elite saw its revenue shrink by 5.4%. We're a little surprised to see the share price pop 220% 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.

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

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

We're pleased to report that hyungji Elite shareholders have received a total shareholder return of 220% over one year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 15% 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 hyungji Elite better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with hyungji Elite .

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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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