Stock Analysis

Even after rising 11% this past week, Shinsegae Engineering & Construction (KRX:034300) shareholders are still down 65% over the past three years

KOSE:A034300

Shinsegae Engineering & Construction Inc. (KRX:034300) shareholders should be happy to see the share price up 18% in the last quarter. But that doesn't change the fact that the returns over the last three years have been disappointing. Regrettably, the share price slid 66% in that period. So the improvement may be a real relief to some. Perhaps the company has turned over a new leaf.

Although the past week has been more reassuring for shareholders, they're still in the red over the last three years, so let's see if the underlying business has been responsible for the decline.

Check out our latest analysis for Shinsegae Engineering & Construction

Shinsegae Engineering & Construction 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. Shareholders of unprofitable companies usually desire strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.

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

KOSE:A034300 Earnings and Revenue Growth September 13th 2024

Take a more thorough look at Shinsegae Engineering & Construction's financial health with this free report on its balance sheet.

A Different Perspective

While the broader market lost about 1.2% in the twelve months, Shinsegae Engineering & Construction shareholders did even worse, losing 12%. 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. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 7% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand Shinsegae Engineering & Construction better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with Shinsegae Engineering & Construction (including 2 which are concerning) .

If you are like me, then you will not want to miss this free list of undervalued small caps that insiders are buying.

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.