While Sam Chun Dang Pharm (KOSDAQ:000250) shareholders have made 359% in 3 years, increasing losses might now be front of mind as stock sheds 8.1% this week

For us, stock picking is in large part the hunt for the truly magnificent stocks. You won't get it right every time, but when you do, the returns can be truly splendid. One bright shining star stock has been Sam Chun Dang Pharm. Co., Ltd (KOSDAQ:000250), which is 358% higher than three years ago. But it's down 8.1% in the last week. But note that the broader market is down 5.9% since last week, and this may have impacted Sam Chun Dang Pharm's share price.

While the stock has fallen 8.1% this week, it's worth focusing on the longer term and seeing if the stocks historical returns have been driven by the underlying fundamentals.

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Given that Sam Chun Dang Pharm didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. When a company doesn't make profits, we'd generally hope to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Over the last three years Sam Chun Dang Pharm has grown its revenue at 8.0% annually. Considering the company is losing money, we think that rate of revenue growth is uninspiring. Therefore, we're a little surprised to see the share price gain has been so strong, at 66% per year, compound, over three years. A win is a win, even if the revenue growth doesn't really explain it, in our view). The company will need to continue to execute on its business strategy to justify this rise.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

If you are thinking of buying or selling Sam Chun Dang Pharm stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's nice to see that Sam Chun Dang Pharm shareholders have received a total shareholder return of 95% over the last year. That's including the dividend. That gain is better than the annual TSR over five years, which is 28%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Sam Chun Dang Pharm better, we need to consider many other factors. For example, we've discovered 2 warning signs for Sam Chun Dang Pharm (1 can't be ignored!) that you should be aware of before investing here.

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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.