Samil PharmaceuticalLtd (KRX:000520) pulls back 11% this week, but still delivers shareholders stellar 150% return over 1 year

Samil Pharmaceutical Co.,Ltd (KRX:000520) shareholders might be concerned after seeing the share price drop 11% in the last week. Despite this, the stock is a strong performer over the last year, no doubt about that. During that period, the share price soared a full 150%. So it is important to view the recent reduction in price through that lense. More important, going forward, is how the business itself is going.

While the stock has fallen 11% this week, it's worth focusing on the longer term and seeing if the stocks historical returns have been driven by the underlying fundamentals.

See our latest analysis for Samil PharmaceuticalLtd

Because Samil PharmaceuticalLtd 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. Shareholders of unprofitable companies usually desire strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last year Samil PharmaceuticalLtd saw its revenue grow by 15%. We respect that sort of growth, no doubt. The revenue growth is decent but the share price had an even better year, gaining 150%. Given that the business has made good progress on the top line, it would be worth taking a look at its path to profitability. But investors need to be wary of how the 'fear of missing out' could influence them to buy without doing thorough research.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

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

A Different Perspective

It's nice to see that Samil PharmaceuticalLtd shareholders have received a total shareholder return of 150% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 12% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - Samil PharmaceuticalLtd has 3 warning signs (and 1 which is significant) we think you should know about.

But note: Samil PharmaceuticalLtd may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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.