GTG Wellness (KOSDAQ:219750) Shareholders Have Enjoyed An Impressive 154% Share Price Gain

GTG Wellness Co., Ltd. (KOSDAQ:219750) shareholders have seen the share price descend 26% over the month. Despite this, the stock is a strong performer over the last year, no doubt about that. We're very pleased to report the share price shot up 154% in that time. So it may be that the share price is simply cooling off after a strong rise. More important, going forward, is how the business itself is going.

Check out our latest analysis for GTG Wellness

GTG Wellness wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

GTG Wellness actually shrunk its revenue over the last year, with a reduction of 29%. So we would not have expected the share price to rise 154%. It just goes to show the market doesn't always pay attention to the reported numbers. Of course, it could be that the market expected this revenue drop.

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

This free interactive report on GTG Wellness' balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's nice to see that GTG Wellness shareholders have gained 154% (in total) over the last year. That gain actually surpasses the 4% TSR it generated (per year) over 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 GTG Wellness better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for GTG Wellness you should be aware of, and 2 of them are a bit unpleasant.

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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