The five-year returns have been stellar for T-Robotics.Co.Ltd (KOSDAQ:117730) shareholders despite underlying losses increasing

The T-Robotics.Co.,Ltd. (KOSDAQ:117730) share price is down a rather concerning 31% in the last month. But that doesn't change the fact that the returns over the last five years have been very strong. In fact, the share price is 190% higher today. To some, the recent pullback wouldn't be surprising after such a fast rise. Only time will tell if there is still too much optimism currently reflected in the share price.

Since the stock has added ₩28b to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

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T-Robotics.Co.Ltd isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

For the last half decade, T-Robotics.Co.Ltd can boast revenue growth at a rate of 3.9% per year. Put simply, that growth rate fails to impress. So we wouldn't have expected to see the share price to have lifted 24% for each year during that time, but that's what happened. While we wouldn't be overly concerned, it might be worth checking whether you think the fundamental business gains really justify the share price action. Some might suggest that the sentiment around the stock is rather positive.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

This free interactive report on T-Robotics.Co.Ltd's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

While the broader market lost about 5.2% in the twelve months, T-Robotics.Co.Ltd shareholders did even worse, losing 37%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Longer term investors wouldn't be so upset, since they would have made 24%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand T-Robotics.Co.Ltd better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with T-Robotics.Co.Ltd .

But note: T-Robotics.Co.Ltd 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.