Is Jeil Steel Mfg's (KOSDAQ:023440) Share Price Gain Of 142% 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 Jeil Steel Mfg Co., Ltd. (KOSDAQ:023440) share price has soared 142% in the last three years. That sort of return is as solid as granite. Also pleasing for shareholders was the 45% gain in the last three months. But this move may well have been assisted by the reasonably buoyant market (up 22% in 90 days).

View our latest analysis for Jeil Steel Mfg

Jeil Steel Mfg 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last 3 years Jeil Steel Mfg saw its revenue shrink by 8.0% per year. So the share price gain of 34% per year is quite surprising. It's a good reminder that expectations about the future, not the past history, always impact share prices.

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

Take a more thorough look at Jeil Steel Mfg's financial health with this free report on its balance sheet.

A Different Perspective

It's nice to see that Jeil Steel Mfg shareholders have received a total shareholder return of 51% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 8% 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 Jeil Steel Mfg better, we need to consider many other factors. Take risks, for example - Jeil Steel Mfg has 4 warning signs (and 1 which is concerning) we think you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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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