Investors Who Bought KPX Lifescience.Co.Ltd (KOSDAQ:114450) Shares Three Years Ago Are Now Up 180%

KPX Lifescience.Co.,Ltd. (KOSDAQ:114450) shareholders might be concerned after seeing the share price drop 26% in the last month. But that doesn't change the fact that the returns over the last three years have been very strong. The share price marched upwards over that time, and is now 180% higher than it was. So the recent fall in the share price should be viewed in that context. Only time will tell if there is still too much optimism currently reflected in the share price.

See our latest analysis for KPX Lifescience.Co.Ltd

Given that KPX Lifescience.Co.Ltd 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. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

KPX Lifescience.Co.Ltd actually saw its revenue drop by 11% per year over three years. So we wouldn't have expected the share price to gain 41% per year, but it has. 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).

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

What about the Total Shareholder Return (TSR)?

We've already covered KPX Lifescience.Co.Ltd's share price action, but we should also mention its total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. KPX Lifescience.Co.Ltd's TSR of 194% for the 3 years exceeded its share price return, because it has paid dividends.

A Different Perspective

It's good to see that KPX Lifescience.Co.Ltd has rewarded shareholders with a total shareholder return of 100% in the last twelve months. That's better than the annualised return of 22% 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. It's always interesting to track share price performance over the longer term. But to understand KPX Lifescience.Co.Ltd better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with KPX Lifescience.Co.Ltd (at least 1 which is significant) , and understanding them should be part of your investment process.

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 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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