Shareholders have faith in loss-making NatureCellLtd (KOSDAQ:007390) as stock climbs 26% in past week, taking one-year gain to 15%

Passive investing in index funds can generate returns that roughly match the overall market. But investors can boost returns by picking market-beating companies to own shares in. To wit, the NatureCell Co.,Ltd. (KOSDAQ:007390) share price is 15% higher than it was a year ago, much better than the market return of around 6.0% (not including dividends) in the same period. So that should have shareholders smiling. Zooming out, the stock is actually down 11% in the last three years.

On the back of a solid 7-day performance, let's check what role the company's fundamentals have played in driving long term shareholder returns.

View our latest analysis for NatureCellLtd

NatureCellLtd wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually desire strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.

In the last year NatureCellLtd saw its revenue grow by 2.2%. That's not great considering the company is losing money. In keeping with the revenue growth, the share price gained 15% in that time. While not a huge gain tht seems pretty reasonable. It could be worth keeping an eye on this one, especially if growth accelerates.

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

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

A Different Perspective

It's nice to see that NatureCellLtd shareholders have received a total shareholder return of 15% over the last year. That's better than the annualised return of 3% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand NatureCellLtd better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for NatureCellLtd (of which 1 can't be ignored!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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.