If You Had Bought Ssangyong Information & Communications (KOSDAQ:010280) Shares Three Years Ago You'd Have Earned 143% Returns

It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes to zero. But if you buy shares in a really great company, you can more than double your money. For example, the Ssangyong Information & Communications Corp. (KOSDAQ:010280) share price has soared 143% in the last three years. Most would be happy with that. It's also good to see the share price up 35% over the last quarter. But this move may well have been assisted by the reasonably buoyant market (up 25% in 90 days).

See our latest analysis for Ssangyong Information & Communications

Ssangyong Information & Communications 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. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last 3 years Ssangyong Information & Communications saw its revenue shrink by 24% per year. So we wouldn't have expected the share price to gain 34% per year, but it has. It's fair to say shareholders are definitely counting on a bright future.

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

Take a more thorough look at Ssangyong Information & Communications' financial health with this free report on its balance sheet.

A Different Perspective

Ssangyong Information & Communications shareholders are up 17% for the year. But that was short of the market average. The silver lining is that the gain was actually better than the average annual return of 0.2% per year over five year. This suggests the company might be improving over time. 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. Take risks, for example - Ssangyong Information & Communications has 2 warning signs we think 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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