Shareholders Are Thrilled That The Chemtros (KOSDAQ:220260) Share Price Increased 154%

Unless you borrow money to invest, the potential losses are limited. But if you pick the right stock, you can make a lot more than 100%. Take, for example Chemtros Co., Ltd. (KOSDAQ:220260). Its share price is already up an impressive 154% in the last twelve months. It's also up 39% in about a month. And shareholders have also done well over the long term, with an increase of 89% in the last three years.

Check out our latest analysis for Chemtros

We don't think that Chemtros' modest trailing twelve month profit has the market's full attention at the moment. We think revenue is probably a better guide. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. It would be hard to believe in a more profitable future without growing revenues.

Over the last twelve months, Chemtros' revenue grew by 0.03%. That's not a very high growth rate considering it doesn't make profits. So we wouldn't have expected the share price to rise by 154%. The business will need a lot more growth to justify that increase. It's quite likely that the market is considering other factors, not just revenue growth.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

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

A Different Perspective

Pleasingly, Chemtros' total shareholder return last year was 154%. That gain actually surpasses the 24% 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. 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 be aware of the 2 warning signs we've spotted with Chemtros .

Of course Chemtros may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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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