Did You Miss S Connect's (KOSDAQ:096630) 65% Share Price Gain?

It might be of some concern to shareholders to see the S Connect Co., LTD. (KOSDAQ:096630) share price down 13% in the last month. Looking further back, the stock has generated good profits over five years. It has returned a market beating 65% in that time.

Check out our latest analysis for S Connect

S Connect 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Over the last half decade S Connect's revenue has actually been trending down at about 5.7% per year. Despite the lack of revenue growth, the stock has returned a respectable 11%, compound, over that time. It's probably worth checking other factors such as the profitability, to try to understand the share price action. It may not be reflecting the revenue.

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

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

A Different Perspective

S Connect provided a TSR of 23% over the last twelve months. But that return falls short of the market. On the bright side, that's still a gain, and it's actually better than the average return of 11% over half a decade This could indicate that the company is winning over new investors, as it pursues its strategy. It's always interesting to track share price performance over the longer term. But to understand S Connect better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with S Connect (including 2 which is are significant) .

We will like S Connect 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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