Stock Analysis

Should Optipharm.CO.LTD (KOSDAQ:153710) Be Disappointed With Their 52% Profit?

KOSDAQ:A153710
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Optipharm.CO.,LTD (KOSDAQ:153710) shareholders might be concerned after seeing the share price drop 29% in the last quarter. While that might be a setback, it doesn't negate the nice returns received over the last twelve months. To wit, it had solidly beat the market, up 52%.

View our latest analysis for Optipharm.CO.LTD

Because Optipharm.CO.LTD made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last year Optipharm.CO.LTD saw its revenue shrink by 7.3%. Despite the lack of revenue growth, the stock has returned a solid 52% the last twelve months. To us that means that there isn't a lot of correlation between the past revenue performance and the share price, but a closer look at analyst forecasts and the bottom line may well explain a lot.

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

earnings-and-revenue-growth
KOSDAQ:A153710 Earnings and Revenue Growth January 20th 2021

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

Optipharm.CO.LTD boasts a total shareholder return of 52% for the last year. Unfortunately the share price is down 29% over the last quarter. Shorter term share price moves often don't signify much about the business itself. It's always interesting to track share price performance over the longer term. But to understand Optipharm.CO.LTD better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Optipharm.CO.LTD you should be aware of, and 1 of them is a bit unpleasant.

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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