Namu TechLtd (KOSDAQ:242040) Shareholders Have Enjoyed A 19% Share Price Gain

There's no doubt that investing in the stock market is a truly brilliant way to build wealth. But if when you choose to buy stocks, some of them will be below average performers. For example, the Namu Tech Co.,Ltd. (KOSDAQ:242040), share price is up over the last year, but its gain of 19% trails the market return. Note that businesses generally develop over the long term, so the returns over the last year might not reflect a long term trend.

View our latest analysis for Namu TechLtd

Given that Namu TechLtd 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Over the last twelve months, Namu TechLtd's revenue grew by 25%. That's a fairly respectable growth rate. The share price gain of 19% seems pretty muted, considering the growth. Its possible that shareholders had expected higher growth. But this one could be a worth watching - a maiden profit would likely catch the market's attention.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

This free interactive report on Namu TechLtd's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Namu TechLtd shareholders have gained 19% for the year. While it's always nice to make a profit on the stock market, we do note that the TSR was no better than the broader market return of about 25%. We regret to inform any shareholders that the share price dropped another 3.5% in the last three months. It may simply be that the share price got ahead of itself, and its quite possible it will keep moving in the right direction, especially if the business continues to deliver good financial results. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Namu TechLtd , and understanding them should be part of your investment process.

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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