It's been a soft week for Chunil Express Co., Ltd. (KRX:000650) shares, which are down 23%. But over the last year the share price has taken off like one of Elon Musk's rockets. Indeed, the share price is up a whopping 796% in that time. So the recent fall isn't enough to negate the good performance. Only time will tell if there is still too much optimism currently reflected in the share price. It really delights us to see such great share price performance for investors.
Although Chunil Express has shed ₩133b from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.
Because Chunil Express made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last year Chunil Express saw its revenue grow by 1.4%. That's not a very high growth rate considering it doesn't make profits. So it's truly surprising that the share price rocketed 796% in a single year. It's great to see that some have made big profits, but we aren't so sure that the increase is justified. This is an example of the huge profits some lucky shareholders occasionally make on growth stocks.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
Take a more thorough look at Chunil Express' financial health with this free report on its balance sheet.
It's good to see that Chunil Express has rewarded shareholders with a total shareholder return of 796% in the last twelve months. That gain is better than the annual TSR over five years, which is 38%. Therefore it seems like sentiment around the company has been positive lately. 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 Chunil Express better, we need to consider many other factors. For instance, we've identified 3 warning signs for Chunil Express that you should be aware of.
But note: Chunil Express 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 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.