While GemVax&KAELLtd (KOSDAQ:082270) shareholders have made 408% in 1 year, increasing losses might now be front of mind as stock sheds 6.2% this week

It might be of some concern to shareholders to see the GemVax&KAEL Co.,Ltd. (KOSDAQ:082270) share price down 11% in the last month. But that cannot eclipse the spectacular share price rise we've seen over the last twelve months. In that time, shareholders have had the pleasure of a 408% boost to the share price. So we wouldn't blame sellers for taking some profits. While winners often keep winning, it can pay to be cautious after a strong rise.

Since the long term performance has been good but there's been a recent pullback of 6.2%, let's check if the fundamentals match the share price.

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GemVax&KAELLtd 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 desire strong revenue growth. 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.

GemVax&KAELLtd actually shrunk its revenue over the last year, with a reduction of 15%. So it's very confusing to see that the share price gained a whopping 408%. It's pretty clear the market isn't basing its valuation on fundamental metrics like revenue. To us, a gain like this looks like speculation, but there might be historical trends to back it up.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

Take a more thorough look at GemVax&KAELLtd's financial health with this free report on its balance sheet.

A Different Perspective

We're pleased to report that GemVax&KAELLtd shareholders have received a total shareholder return of 408% over one year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 18% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand GemVax&KAELLtd better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for GemVax&KAELLtd (of which 2 make us uncomfortable!) you should know about.

We will like GemVax&KAELLtd better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying.

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.