The one-year returns have been massive for Dongyang Express (KRX:084670) shareholders despite underlying losses increasing

While some are satisfied with an index fund, active investors aim to find truly magnificent investments on the stock market. When you find (and hold) a big winner, you can markedly improve your finances. For example, the Dongyang Express Corp. (KRX:084670) share price rocketed moonwards 723% in just one year. And in the last month, the share price has gained 721%. This could be related to the recent financial results that were recently released - you could check the most recent data by reading our company report. And shareholders have also done well over the long term, with an increase of 306% in the last three years. Anyone who held for that rewarding ride would probably be keen to talk about it.

The past week has proven to be lucrative for Dongyang Express investors, so let's see if fundamentals drove the company's one-year performance.

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Dongyang Express 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. 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 would hope for good top-line growth to make up for the lack of earnings.

In the last year Dongyang Express saw its revenue grow by 0.2%. That's not a very high growth rate considering it doesn't make profits. So the 723% gain in just twelve months is completely unexpected. It's great to see that some have made big profits, but we aren't so sure that the increase is justified. It just goes to show that big money can be made if you buy the right stock early.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

If you are thinking of buying or selling Dongyang Express stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's good to see that Dongyang Express has rewarded shareholders with a total shareholder return of 723% in the last twelve months. That gain is better than the annual TSR over five years, which is 18%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that Dongyang Express is showing 1 warning sign in our investment analysis , you should know about...

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

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.