Is Pan EntertainmentLtd's (KOSDAQ:068050) 184% Share Price Increase Well Justified?

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But in contrast you can make much more than 100% if the company does well. For instance the Pan Entertainment Co.,Ltd. (KOSDAQ:068050) share price is 184% higher than it was three years ago. That sort of return is as solid as granite. On top of that, the share price is up 50% in about a quarter. But this could be related to the strong market, which is up 23% in the last three months.

Check out our latest analysis for Pan EntertainmentLtd

Given that Pan EntertainmentLtd only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. It would be hard to believe in a more profitable future without growing revenues.

Pan EntertainmentLtd actually saw its revenue drop by 3.2% per year over three years. So the share price gain of 42% per year is quite surprising. It's fair to say shareholders are definitely counting on a bright future.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

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

A Different Perspective

It's good to see that Pan EntertainmentLtd has rewarded shareholders with a total shareholder return of 143% in the last twelve months. That's better than the annualised return of 16% over half a decade, implying that the company is doing better recently. In the best case scenario, this 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. Case in point: We've spotted 2 warning signs for Pan EntertainmentLtd you should be aware of.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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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