If You Had Bought YEST (KOSDAQ:122640) Shares Five Years Ago You'd Have Earned 112% Returns

When you buy a stock there is always a possibility that it could drop 100%. But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%. For example, the YEST Co., Ltd. (KOSDAQ:122640) share price has soared 112% in the last half decade. Most would be very happy with that. It's also good to see the share price up 56% over the last quarter. But this move may well have been assisted by the reasonably buoyant market (up 23% in 90 days).

See our latest analysis for YEST

Given that YEST didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. 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.

Over the last half decade YEST's revenue has actually been trending down at about 12% per year. On the other hand, the share price done the opposite, gaining 16%, compound, each year. It just goes to show tht the market is forward looking, and it's not always easy to predict the future based on past trends. Still, this situation makes us a little wary of the stock.

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

If you are thinking of buying or selling YEST stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

YEST provided a TSR of 31% over the last twelve months. Unfortunately this falls short of the market return. On the bright side, that's still a gain, and it's actually better than the average return of 16% over half a decade It is possible that returns will improve along with the business fundamentals. It's always interesting to track share price performance over the longer term. But to understand YEST better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for YEST (of which 1 can't be ignored!) you should know about.

Of course YEST may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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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