Is PCL's (KOSDAQ:241820) Share Price Gain Of 249% Well Earned?

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. For example, the PCL, Inc. (KOSDAQ:241820) share price had more than doubled in just one year - up 249%. Better yet, the share price has risen 7.0% in the last week. It is also impressive that the stock is up 82% over three years, adding to the sense that it is a real winner.

View our latest analysis for PCL

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

PCL went from making a loss to reporting a profit, in the last year.

When a company is just on the edge of profitability it can be well worth considering other metrics in order to more precisely gauge growth (and therefore understand share price movements).

However the year on year revenue growth of 147,036% would help. Many businesses do go through a phase where they have to forgo some profits to drive business development, and sometimes its for the best.

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 PCL stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Pleasingly, PCL's total shareholder return last year was 249%. That's better than the annualized TSR of 22% over the last three years. Given the track record of solid returns over varying time frames, it might be worth putting PCL on your watchlist. It's always interesting to track share price performance over the longer term. But to understand PCL better, we need to consider many other factors. Take risks, for example - PCL has 3 warning signs (and 1 which is a bit unpleasant) we think you should know about.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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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