Shareholders Are Thrilled That The Micro Digital (KOSDAQ:305090) Share Price Increased 177%

It hasn't been the best quarter for Micro Digital Co., Ltd. (KOSDAQ:305090) shareholders, since the share price has fallen 24% in that time. On the other hand, over the last twelve months the stock has delivered rather impressive returns. Like an eagle, the share price soared 177% in that time. So some might not be surprised to see the price retrace some. More important, going forward, is how the business itself is going.

See our latest analysis for Micro Digital

Given that Micro Digital didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last year Micro Digital saw its revenue shrink by 54%. So we would not have expected the share price to rise 177%. 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).

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

It's nice to see that Micro Digital shareholders have gained 177% over the last year. Unfortunately the share price is down 24% over the last quarter. It may simply be that the share price got ahead of itself, although there may have been fundamental developments that are weighing on it. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For instance, we've identified 5 warning signs for Micro Digital (1 can't be ignored) that you should be aware of.

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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