LigaChem Biosciences (KOSDAQ:141080) delivers shareholders solid 41% CAGR over 3 years, surging 8.9% in the last week alone

The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But if you buy shares in a really great company, you can more than double your money. For instance the LigaChem Biosciences Inc. (KOSDAQ:141080) share price is 180% higher than it was three years ago. How nice for those who held the stock! Also pleasing for shareholders was the 23% gain in the last three months. But this could be related to the strong market, which is up 18% in the last three months.

The past week has proven to be lucrative for LigaChem Biosciences investors, so let's see if fundamentals drove the company's three-year performance.

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Given that LigaChem Biosciences 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. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.

In the last 3 years LigaChem Biosciences saw its revenue grow at 59% per year. That's much better than most loss-making companies. Along the way, the share price gained 41% per year, a solid pop by our standards. This suggests the market has recognized the progress the business has made, at least to a significant degree. That's not to say we think the share price is too high. In fact, it might be worth keeping an eye on this one.

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

We know that LigaChem Biosciences has improved its bottom line over the last three years, but what does the future have in store? Take a more thorough look at LigaChem Biosciences' financial health with this free report on its balance sheet.

A Different Perspective

We're pleased to report that LigaChem Biosciences shareholders have received a total shareholder return of 64% over one year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 17% per year), it would seem that the stock's performance has improved in recent times. 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 LigaChem Biosciences better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for LigaChem Biosciences you should know about.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation).

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.