Is Dexter StudiosLtd's (KOSDAQ:206560) Share Price Gain Of 104% Well Earned?

Unless you borrow money to invest, the potential losses are limited. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Dexter Studios Co.,Ltd. (KOSDAQ:206560) share price has soared 104% return in just a single year. Also pleasing for shareholders was the 46% gain in the last three months. Zooming out, the stock is actually down 22% in the last three years.

Check out our latest analysis for Dexter StudiosLtd

Because Dexter StudiosLtd 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Dexter StudiosLtd actually shrunk its revenue over the last year, with a reduction of 42%. We're a little surprised to see the share price pop 104% in the last year. It just goes to show the market doesn't always pay attention to the reported numbers. It's quite likely the revenue fall was already priced in, anyway.

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 Dexter StudiosLtd's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's nice to see that Dexter StudiosLtd shareholders have received a total shareholder return of 104% over the last year. That certainly beats the loss of about 6% per year over the last half decade. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. It's always interesting to track share price performance over the longer term. But to understand Dexter StudiosLtd better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Dexter StudiosLtd you should be aware of, and 1 of them is a bit concerning.

But note: Dexter StudiosLtd may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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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