Does KUKBO LogisticsLtd's (KRX:001140) Share Price Gain of 97% Match Its Business Performance?

It hasn't been the best quarter for KUKBO Logistics Co.,Ltd (KRX:001140) shareholders, since the share price has fallen 22% in that time. But over three years, the returns would have left most investors smiling After all, the share price is up a market-beating 97% in that time.

Check out our latest analysis for KUKBO LogisticsLtd

Given that KUKBO LogisticsLtd 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last 3 years KUKBO LogisticsLtd saw its revenue grow at 13% per year. That's pretty nice growth. The share price gain of 25% per year shows that the market is paying attention to this growth. Of course, valuation is quite sensitive to the rate of growth. Of course, it's always worth considering funding risks when a company isn't profitable.

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

A Different Perspective

KUKBO LogisticsLtd shareholders are down 38% for the year, but the market itself is up 35%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. On the bright side, long term shareholders have made money, with a gain of 3% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand KUKBO LogisticsLtd better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for KUKBO LogisticsLtd (of which 2 are a bit concerning!) you should know about.

But note: KUKBO LogisticsLtd may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on KR exchanges.

If you decide to trade KUKBO LogisticsLtd, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.