HLB Power's (KOSDAQ:043220) Stock Price Has Reduced 64% In The Past Five Years

Generally speaking long term investing is the way to go. But no-one is immune from buying too high. For example, after five long years the HLB Power Co., Ltd. (KOSDAQ:043220) share price is a whole 64% lower. We certainly feel for shareholders who bought near the top. Furthermore, it's down 11% in about a quarter. That's not much fun for holders.

Check out our latest analysis for HLB Power

Given that HLB Power only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.

In the last half decade, HLB Power saw its revenue increase by 12% per year. That's a pretty good rate for a long time period. The share price, meanwhile, has fallen 10% compounded, over five years. It seems probably that the business has failed to live up to initial expectations. A pessimistic market can create opportunities.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

HLB Power shareholders are down 12% for the year, but the market itself is up 48%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. However, the loss over the last year isn't as bad as the 10% per annum loss investors have suffered over the last half decade. We would want clear information suggesting the company will grow, before taking the view that the share price will stabilize. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with HLB Power , and understanding them should be part of your investment process.

We will like HLB Power better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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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