The one-year returns have been favorable for CORESTEMCHEMON (KOSDAQ:166480) shareholders despite underlying losses increasing

If you want to compound wealth in the stock market, you can do so by buying an index fund. But if you pick the right individual stocks, you could make more than that. To wit, the CORESTEMCHEMON Inc. (KOSDAQ:166480) share price is 42% higher than it was a year ago, much better than the market return of around 5.0% (not including dividends) in the same period. That's a solid performance by our standards! Unfortunately the longer term returns are not so good, with the stock falling 30% in the last three years.

Since it's been a strong week for CORESTEMCHEMON shareholders, let's have a look at trend of the longer term fundamentals.

View our latest analysis for CORESTEMCHEMON

Because CORESTEMCHEMON 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. When a company doesn't make profits, we'd generally hope to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.

CORESTEMCHEMON actually shrunk its revenue over the last year, with a reduction of 27%. Despite the lack of revenue growth, the stock has returned a solid 42% the last twelve months. We can correlate the share price rise with revenue or profit growth, but it seems the market had previously expected weaker results, and sentiment around the stock is improving.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

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.

A Different Perspective

We're pleased to report that CORESTEMCHEMON shareholders have received a total shareholder return of 42% over one year. That's better than the annualised return of 1.1% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For instance, we've identified 2 warning signs for CORESTEMCHEMON (1 doesn't sit too well with us) that you should be aware of.

Of course CORESTEMCHEMON may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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.