If You Had Bought Daewon Cable's (KRX:006340) Shares Five Years Ago You Would Be Down 58%

We think intelligent long term investing is the way to go. But unfortunately, some companies simply don't succeed. For example, after five long years the Daewon Cable. Co., Ltd. (KRX:006340) share price is a whole 58% lower. That's not a lot of fun for true believers. And the share price decline continued over the last week, dropping some 7.1%.

See our latest analysis for Daewon Cable

Daewon Cable isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong 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 five years Daewon Cable saw its revenue shrink by 2.9% per year. That's not what investors generally want to see. With neither profit nor revenue growth, the loss of 10% per year doesn't really surprise us. We don't think anyone is rushing to buy this stock. Ultimately, it may be worth watching - should revenue pick up, the share price might follow.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

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

A Different Perspective

Investors in Daewon Cable had a tough year, with a total loss of 9.9%, against a market gain of about 31%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Unfortunately, longer term shareholders are suffering worse, given the loss of 10% doled out over the last five years. We would want clear information suggesting the company will grow, before taking the view that the share price will stabilize. It's always interesting to track share price performance over the longer term. But to understand Daewon Cable better, we need to consider many other factors. For instance, we've identified 3 warning signs for Daewon Cable (1 is concerning) that you should be aware of.

We will like Daewon Cable 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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