Stock Analysis

We Think Green Cross Lab Cell's (KOSDAQ:144510) Robust Earnings Are Conservative

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KOSDAQ:A144510
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When companies post strong earnings, the stock generally performs well, just like Green Cross Lab Cell Corporation's (KOSDAQ:144510) stock has recently. We did some digging and found some further encouraging factors that investors will like.

View our latest analysis for Green Cross Lab Cell

earnings-and-revenue-history
KOSDAQ:A144510 Earnings and Revenue History March 19th 2021

The Impact Of Unusual Items On Profit

For anyone who wants to understand Green Cross Lab Cell's profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit was reduced by ₩1.1b due to unusual items. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And, after all, that's exactly what the accounting terminology implies. If Green Cross Lab Cell doesn't see those unusual expenses repeat, then all else being equal we'd expect its profit to increase over the coming year.

Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Green Cross Lab Cell.

Our Take On Green Cross Lab Cell's Profit Performance

Unusual items (expenses) detracted from Green Cross Lab Cell's earnings over the last year, but we might see an improvement next year. Based on this observation, we consider it likely that Green Cross Lab Cell's statutory profit actually understates its earnings potential! And it's also positive that the company showed enough improvement to book a profit this year, after losing money last year. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. For example - Green Cross Lab Cell has 1 warning sign we think you should be aware of.

This note has only looked at a single factor that sheds light on the nature of Green Cross Lab Cell's profit. But there are plenty of other ways to inform your opinion of a company. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks that insiders are buying to be useful.

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About KOSDAQ:A144510

GC Cell

GC Cell Corporation develops cell therapy products.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation4
Future Growth0
Past Performance5
Financial Health5
Dividends0

Read more about these checks in the individual report sections or in our analysis model.

Excellent balance sheet with solid track record.

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