LONGTU KOREA's(KOSDAQ:060240) Share Price Is Down 42% Over The Past Five Years.

LONGTU KOREA Inc. (KOSDAQ:060240) shareholders should be happy to see the share price up 17% in the last month. But that doesn't change the fact that the returns over the last five years have been less than pleasing. You would have done a lot better buying an index fund, since the stock has dropped 42% in that half decade.

Check out our latest analysis for LONGTU KOREA

Because LONGTU KOREA 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. 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.

Over five years, LONGTU KOREA grew its revenue at 4.4% per year. That's far from impressive given all the money it is losing. Given the weak growth, the share price fall of 7% isn't particularly surprising. The key question is whether the company can make it to profitability, and beyond, without trouble. Shareholders will want the company to approach profitability if it can't grow revenue any faster.

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

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

LONGTU KOREA provided a TSR of 2.5% over the last twelve months. 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 7% endured over half a decade. So this might be a sign the business has turned its fortunes around. It's always interesting to track share price performance over the longer term. But to understand LONGTU KOREA better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for LONGTU KOREA you should be aware of.

Of course LONGTU KOREA may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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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