Introducing DE&T (KOSDAQ:079810), The Stock That Zoomed 161% In The Last Year

Unfortunately, investing is risky - companies can and do go bankrupt. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! Take, for example DE&T Co., Ltd. (KOSDAQ:079810). Its share price is already up an impressive 161% in the last twelve months. It's also up 11% in about a month. But the price may well have benefitted from a buoyant market, since stocks have gained 4.7% in the last thirty days. And shareholders have also done well over the long term, with an increase of 118% in the last three years.

See our latest analysis for DE&T

DE&T wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last year DE&T saw its revenue shrink by 19%. So we would not have expected the share price to rise 161%. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. Of course, it could be that the market expected this revenue drop.

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

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

A Different Perspective

We're pleased to report that DE&T shareholders have received a total shareholder return of 161% over one year. That's better than the annualised return of 20% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand DE&T better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for DE&T you should be aware of, and 2 of them make us uncomfortable.

But note: DE&T 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 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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