Introducing NuintekLtd (KOSDAQ:012340), The Stock That Zoomed 217% In The Last Year

Unfortunately, investing is risky - companies can and do go bankrupt. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! For example, the Nuintek Co.,Ltd. (KOSDAQ:012340) share price had more than doubled in just one year - up 217%. Also pleasing for shareholders was the 86% gain in the last three months. Having said that, the longer term returns aren't so impressive, with stock gaining just 26% in three years.

See our latest analysis for NuintekLtd

NuintekLtd 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last year NuintekLtd saw its revenue grow by 6.0%. That's not a very high growth rate considering it doesn't make profits. In contrast, the share price took off during the year, gaining 217%. We're happy that investors have made money, though we wonder if the increase will be sustained. We're not so sure that revenue growth is driving the market optimism about the stock.

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 NuintekLtd's financial health with this free report on its balance sheet.

A Different Perspective

It's nice to see that NuintekLtd shareholders have received a total shareholder return of 217% over the last year. That gain is better than the annual TSR over five years, which is 3%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with 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. To that end, you should be aware of the 2 warning signs we've spotted with NuintekLtd .

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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