The five-year returns have been stellar for ENVIONEERLtd (KOSDAQ:317870) shareholders despite underlying losses increasing

When you buy a stock there is always a possibility that it could drop 100%. But on a lighter note, a good company can see its share price rise well over 100%. Long term ENVIONEER Co.,Ltd. (KOSDAQ:317870) shareholders would be well aware of this, since the stock is up 217% in five years. Also pleasing for shareholders was the 17% gain in the last three months.

The past week has proven to be lucrative for ENVIONEERLtd investors, so let's see if fundamentals drove the company's five-year performance.

We've discovered 1 warning sign about ENVIONEERLtd. View them for free.

Because ENVIONEERLtd 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. Shareholders of unprofitable companies usually desire strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

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

A Different Perspective

Although it hurts that ENVIONEERLtd returned a loss of 3.1% in the last twelve months, the broader market was actually worse, returning a loss of 4.3%. Longer term investors wouldn't be so upset, since they would have made 26%, each year, over five years. In the best case scenario the last year is just a temporary blip on the journey to a brighter future. 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. Even so, be aware that ENVIONEERLtd is showing 1 warning sign in our investment analysis , you should know about...

We will like ENVIONEERLtd better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on South Korean exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.