Stock Analysis

Can You Imagine How GenoFocus' (KOSDAQ:187420) Shareholders Feel About The 55% Share Price Increase?

KOSDAQ:A187420
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It hasn't been the best quarter for GenoFocus, Inc. (KOSDAQ:187420) shareholders, since the share price has fallen 14% in that time. But that fact in itself shouldn't obscure what are quite decent returns over the last year. We say this because the stock (which is up 55%) actually surpassed the market return of (47%).

See our latest analysis for GenoFocus

Because GenoFocus 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. 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.

GenoFocus grew its revenue by 46% last year. That's a head and shoulders above most loss-making companies. While the share price gain of 55% over twelve months is pretty tasty, you might argue it doesn't fully reflect the strong revenue growth. So quite frankly it could be a good time to investigate GenoFocus in some detail. Human beings have trouble conceptualizing (and valuing) exponential growth. Is that what we're seeing here?

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

earnings-and-revenue-growth
KOSDAQ:A187420 Earnings and Revenue Growth February 17th 2021

Take a more thorough look at GenoFocus' financial health with this free report on its balance sheet.

A Different Perspective

We're pleased to report that GenoFocus shareholders have received a total shareholder return of 55% over one year. That certainly beats the loss of about 3% 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. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. To that end, you should learn about the 3 warning signs we've spotted with GenoFocus (including 1 which can't be ignored) .

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can 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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