Did Business Growth Power I-Chiun Precision Industry's (TPE:2486) Share Price Gain of 114%?

Unfortunately, investing is risky - companies can and do go bankrupt. But when you pick a company that is really flourishing, you can make more than 100%. For example, the I-Chiun Precision Industry Co., Ltd. (TPE:2486) share price has soared 114% in the last year. Most would be very happy with that, especially in just one year! Also pleasing for shareholders was the 83% gain in the last three months. Also impressive, the stock is up 83% over three years, making long term shareholders happy, too.

Check out our latest analysis for I-Chiun Precision Industry

Given that I-Chiun Precision Industry 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. Shareholders of unprofitable companies usually expect strong 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.

Over the last twelve months, I-Chiun Precision Industry's revenue grew by 10%. That's not great considering the company is losing money. In contrast, the share price took off during the year, gaining 114%. The business will need a lot more growth to justify that increase. It's quite likely that the market is considering other factors, not just revenue growth.

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

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

We're pleased to report that I-Chiun Precision Industry shareholders have received a total shareholder return of 114% over one year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 15% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand I-Chiun Precision Industry better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with I-Chiun Precision Industry , and understanding them should be part of your investment process.

But note: I-Chiun Precision Industry 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 TW 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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