NSN's(KOSDAQ:031860) Share Price Is Down 62% Over The Past Three Years.

NSN Co., Ltd. (KOSDAQ:031860) shareholders will doubtless be very grateful to see the share price up 56% in the last quarter. But that is small recompense for the exasperating returns over three years. Tragically, the share price declined 62% in that time. So it is really good to see an improvement. After all, could be that the fall was overdone.

Check out our latest analysis for NSN

Given that NSN didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last three years, NSN saw its revenue grow by 56% per year, compound. That's well above most other pre-profit companies. The share price has moved in quite the opposite direction, down 18% over that time, a bad result. It seems likely that the market is worried about the continual losses. But a share price drop of that magnitude could well signal that the market is overly negative on the stock.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

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

A Different Perspective

NSN shareholders gained a total return of 4.9% during the year. Unfortunately this falls short of the market return. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 9% endured over half a decade. It could well be that the business is stabilizing. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For instance, we've identified 3 warning signs for NSN (1 is a bit unpleasant) that you should be aware of.

But note: NSN 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 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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