The NewFlex Technology (KOSDAQ:085670) Share Price Has Gained 31% And Shareholders Are Hoping For More

The main point of investing for the long term is to make money. But more than that, you probably want to see it rise more than the market average. But NewFlex Technology Co., Ltd. (KOSDAQ:085670) has fallen short of that second goal, with a share price rise of 31% over five years, which is below the market return. Over the last twelve months the stock price has risen a very respectable 17%.

View our latest analysis for NewFlex Technology

NewFlex Technology 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. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last 5 years NewFlex Technology saw its revenue grow at 2.4% per year. That's not a very high growth rate considering the bottom line. Like its revenue, its share price gained over the period. The increase of 6% per year probably reflects the modest revenue growth. If profitability is likely in the near term, then this might be one to add to your watchlist.

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 NewFlex Technology's balance sheet strength is a great place to start, if you want to investigate the stock further.

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between NewFlex Technology's total shareholder return (TSR) and its share price return. Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. NewFlex Technology's TSR of 34% for the 5 years exceeded its share price return, because it has paid dividends.

A Different Perspective

NewFlex Technology shareholders are up 17% for the year. Unfortunately this falls short of the market return. The silver lining is that the gain was actually better than the average annual return of 6% per year over five year. This suggests the company might be improving over time. It's always interesting to track share price performance over the longer term. But to understand NewFlex Technology better, we need to consider many other factors. For example, we've discovered 4 warning signs for NewFlex Technology (2 are concerning!) that you should be aware of before investing here.

We will like NewFlex Technology 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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