Investors Who Bought ST PharmLtd (KOSDAQ:237690) Shares A Year Ago Are Now Up 221%

It hasn't been the best quarter for ST Pharm Co.,Ltd. (KOSDAQ:237690) shareholders, since the share price has fallen 23% in that time. Despite this, the stock is a strong performer over the last year, no doubt about that. We're very pleased to report the share price shot up 221% in that time. So it may be that the share price is simply cooling off after a strong rise. Investors should be wondering whether the business itself has the fundamental value required to continue to drive gains.

Check out our latest analysis for ST PharmLtd

Because ST PharmLtd 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. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last year ST PharmLtd saw its revenue grow by 56%. That's well above most other pre-profit companies. And the share price has responded, gaining 221% as we previously mentioned. That sort of revenue growth is bound to attract attention, even if the company doesn't turn a profit. Given the positive sentiment around the stock we're cautious, but there's no doubt its worth watching.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

Take a more thorough look at ST PharmLtd's financial health with this free report on its balance sheet.

A Different Perspective

It's nice to see that ST PharmLtd shareholders have gained 221% (in total) over the last year. That's better than the annualized TSR of 22% over the last three years. These improved returns 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 ST PharmLtd better, we need to consider many other factors. Take risks, for example - ST PharmLtd has 1 warning sign we think you should be aware of.

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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