Can You Imagine How Cheilbio's (KOSDAQ:052670) Shareholders Feel About The 83% Share Price Increase?

By buying an index fund, investors can approximate the average market return. But if you buy good businesses at attractive prices, your portfolio returns could exceed the average market return. For example, the Cheilbio Co., Ltd. (KOSDAQ:052670) share price is up 83% in the last three years, clearly besting the market return of around 22% (not including dividends).

See our latest analysis for Cheilbio

Given that Cheilbio only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. It would be hard to believe in a more profitable future without growing revenues.

In the last 3 years Cheilbio saw its revenue shrink by 13% per year. The revenue growth might be lacking but the share price has gained 22% each year in that time. If the company is cutting costs profitability could be on the horizon, but the revenue decline is a prima facie concern.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

Take a more thorough look at Cheilbio's financial health with this free report on its balance sheet.

A Different Perspective

Cheilbio shareholders are down 16% for the year, but the market itself is up 42%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 7% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand Cheilbio better, we need to consider many other factors. For example, we've discovered 2 warning signs for Cheilbio that you should be aware of before investing here.

But note: Cheilbio 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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