NaintechLTD (KOSDAQ:267320) pulls back 14% this week, but still delivers shareholders respectable 9.7% CAGR over 5 years

It's been a soft week for Naintech CO.,LTD. (KOSDAQ:267320) shares, which are down 14%. While that's not great, the returns over five years have been decent. After all, the stock has performed better than the market (56%) in that time, and is up 59%.

Since the long term performance has been good but there's been a recent pullback of 14%, let's check if the fundamentals match the share price.

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Because NaintechLTD 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.

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

This free interactive report on NaintechLTD's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's good to see that NaintechLTD has rewarded shareholders with a total shareholder return of 40% in the last twelve months. That gain is better than the annual TSR over five years, which is 10%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. 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 risks, for instance. Every company has them, and we've spotted 2 warning signs for NaintechLTD you should know about.

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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.