MEDIPOST (KOSDAQ:078160) shareholder returns have been solid, earning 119% in 1 year

Unfortunately, investing is risky - companies can and do go bankrupt. But when you pick a company that is really flourishing, you can make more than 100%. For example, the MEDIPOST Co., Ltd. (KOSDAQ:078160) share price has soared 119% return in just a single year. It's also good to see the share price up 25% over the last quarter. But this could be related to the strong market, which is up 13% in the last three months. In contrast, the longer term returns are negative, since the share price is 31% lower than it was three years ago.

After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals.

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Because MEDIPOST 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. Shareholders of unprofitable companies usually desire strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last year MEDIPOST saw its revenue grow by 3.1%. That's not great considering the company is losing money. So we wouldn't have expected the share price to rise by 119%. We're happy that investors have made money, though we wonder if the increase will be sustained. We're not so sure that revenue growth is driving the market optimism about the stock.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

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

A Different Perspective

It's nice to see that MEDIPOST shareholders have received a total shareholder return of 119% over the last year. That certainly beats the loss of about 8% per year over the last half decade. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. It's always interesting to track share price performance over the longer term. But to understand MEDIPOST better, we need to consider many other factors. For instance, we've identified 3 warning signs for MEDIPOST (2 are potentially serious) that you should be aware of.

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Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on South Korean exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.