Investors Who Bought SamYoung ChemicalLtd (KRX:003720) Shares A Year Ago Are Now Up 100%

It might be of some concern to shareholders to see the SamYoung Chemical Co.,Ltd (KRX:003720) share price down 12% in the last month. But that doesn't change the fact that the returns over the last year have been very strong. Indeed, the share price is up an impressive 100% in that time. So some might not be surprised to see the price retrace some. More important, going forward, is how the business itself is going.

View our latest analysis for SamYoung ChemicalLtd

Because SamYoung ChemicalLtd 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 expect strong revenue growth. 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.

SamYoung ChemicalLtd grew its revenue by 2.5% last year. That's not a very high growth rate considering it doesn't make profits. In contrast, the share price took off during the year, gaining 100%. We're happy that investors have made money, though we wonder if the increase will be sustained. We're not so sure that revenue growth is driving the market optimism about the stock.

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

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

It's nice to see that SamYoung ChemicalLtd shareholders have received a total shareholder return of 100% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 2% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for SamYoung ChemicalLtd (of which 1 makes us a bit uncomfortable!) you should know about.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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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