Innox (KOSDAQ:088390) Shareholders Have Enjoyed An Impressive 105% Share Price Gain

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But if you pick the right business to buy shares in, you can make more than you can lose. Take, for example Innox Corporation (KOSDAQ:088390). Its share price is already up an impressive 105% in the last twelve months. It's also good to see the share price up 88% over the last quarter. In contrast, the longer term returns are negative, since the share price is 14% lower than it was three years ago.

View our latest analysis for Innox

Innox isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Innox actually shrunk its revenue over the last year, with a reduction of 2.6%. So we would not have expected the share price to rise 105%. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. It's quite likely the revenue fall was already priced in, anyway.

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

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

A Different Perspective

It's nice to see that Innox shareholders have received a total shareholder return of 105% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 94% 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. 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 instance, we've identified 3 warning signs for Innox (1 makes us a bit uncomfortable) that you should be aware of.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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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