Earnings grew faster than the notable 63% return delivered to Hanall Biopharma (KRX:009420) shareholders over the last year

It hasn't been the best quarter for Hanall Biopharma Co., Ltd. (KRX:009420) shareholders, since the share price has fallen 16% in that time. But that doesn't change the reality that over twelve months the stock has done really well. Looking at the full year, the company has easily bested an index fund by gaining 63%.

Although Hanall Biopharma has shed ₩236b from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.

Check out our latest analysis for Hanall Biopharma

While Hanall Biopharma made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.

In the last year Hanall Biopharma saw its revenue grow by 23%. That's a fairly respectable growth rate. Buyers pushed the share price 63% in response, which isn't unreasonable. If the company can maintain the revenue growth, the share price could go higher still. But it's crucial to check profitability and cash flow before forming a view on the future.

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

We know that Hanall Biopharma has improved its bottom line lately, but what does the future have in store? This free report showing analyst forecasts should help you form a view on Hanall Biopharma

A Different Perspective

It's nice to see that Hanall Biopharma shareholders have received a total shareholder return of 63% over the last year. Notably the five-year annualised TSR loss of 0.2% per year compares very unfavourably with the recent share price performance. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. 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 example, we've discovered 1 warning sign for Hanall Biopharma that you should be aware of before investing here.

But note: Hanall Biopharma 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.