A Look At Seojin AutomotiveLtd's (KOSDAQ:122690) Share Price Returns

Generally speaking long term investing is the way to go. But no-one is immune from buying too high. To wit, the Seojin Automotive Co.,Ltd. (KOSDAQ:122690) share price managed to fall 55% over five long years. That's an unpleasant experience for long term holders. Unhappily, the share price slid 2.7% in the last week.

See our latest analysis for Seojin AutomotiveLtd

Seojin AutomotiveLtd 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 it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last half decade, Seojin AutomotiveLtd saw its revenue increase by 1.7% per year. That's far from impressive given all the money it is losing. This lacklustre growth has no doubt fueled the loss of 9% per year, in that time. We'd want to see proof that future revenue growth is likely to be significantly stronger before getting too interested in Seojin AutomotiveLtd. However, it's possible too many in the market will ignore it, and there may be an opportunity if it starts to recover down the track.

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

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

A Different Perspective

It's nice to see that Seojin AutomotiveLtd shareholders have received a total shareholder return of 42% over the last year. There's no doubt those recent returns are much better than the TSR loss of 9% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand Seojin AutomotiveLtd better, we need to consider many other factors. For example, we've discovered 3 warning signs for Seojin AutomotiveLtd (1 doesn't sit too well with us!) that you should be aware of before investing here.

But note: Seojin AutomotiveLtd 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.

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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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