Can You Imagine How Dongkuk Steel Mill's (KRX:001230) Shareholders Feel About The 34% Share Price Increase?

It's always best to build a diverse portfolio of shares, since any stock business could lag the broader market. Of course, the aim of the game is to pick stocks that do better than an index fund. One such company is Dongkuk Steel Mill Company Limited (KRX:001230), which saw its share price increase 34% in the last year, slightly above the market return of around 34% (not including dividends). Zooming out, the stock is actually down 30% in the last three years.

See our latest analysis for Dongkuk Steel Mill

Because Dongkuk Steel Mill 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 it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last year Dongkuk Steel Mill saw its revenue shrink by 11%. The stock is up 34% in that time, a fine performance given the revenue drop. We can correlate the share price rise with revenue or profit growth, but it seems the market had previously expected weaker results, and sentiment around the stock is improving.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

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

A Different Perspective

Dongkuk Steel Mill provided a TSR of 34% over the year. That's fairly close to the broader market return. That gain looks pretty satisfying, and it is even better than the five-year TSR of 3% per year. Even if the share price growth slows down from here, there's a good chance that this is business worth watching in the long term. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.

Of course Dongkuk Steel Mill 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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