Did Datasolution's (KOSDAQ:263800) Share Price Deserve to Gain 43%?

It hasn't been the best quarter for Datasolution, Inc. (KOSDAQ:263800) shareholders, since the share price has fallen 27% in that time. But at least the stock is up over the last year. In that time, it is up 43%, which isn't bad, but is below the market return of 56%.

Check out our latest analysis for Datasolution

Given that Datasolution only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.

In the last year Datasolution saw its revenue shrink by 26%. The lacklustre gain of 43% over twelve months, is not a bad result given the falling revenue. Generally we're pretty unenthusiastic about loss making stocks that are not growing revenue.

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

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

A Different Perspective

Datasolution produced a TSR of 43% over the last year. It's always nice to make money but this return falls short of the market return which was about 56% for the year. On the bright side that gain is actually better than the average return of 6% over the last three years, implying that the company is doing better recently. If the share price is up as a result of improved business performance, then this kind of improvement may be sustained. 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 - Datasolution has 3 warning signs we think you should be aware of.

We will like Datasolution better if we see some big insider buys. While we wait, check out this free list of growing companies 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 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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