Stock Analysis

ASIA SEEDLtd (KOSDAQ:154030) Shareholders Have Enjoyed A 53% Share Price Gain

KOSDAQ:A154030
Source: Shutterstock

It certainly was a quite a shock to see the ASIA SEED Co.,Ltd. (KOSDAQ:154030) share price fall -32% in the last week. But that shouldn't obscure the pleasing returns achieved by shareholders over the last three years. In fact, the company's share price bested the return of its market index in that time, posting a gain of 53%.

Check out our latest analysis for ASIA SEEDLtd

ASIA SEEDLtd 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 expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

ASIA SEEDLtd's revenue trended up 2.1% each year over three years. Considering the company is losing money, we think that rate of revenue growth is uninspiring. The modest growth is probably broadly reflected in the share price, which is up 15%, per year over 3 years. Ultimately, the important thing is whether the company is trending to profitability. In this sort of situation it can be worth putting the stock on your watchlist. If it can become profitable, then even moderate revenue growth could grow profits quickly.

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

earnings-and-revenue-growth
KOSDAQ:A154030 Earnings and Revenue Growth December 8th 2020

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

ASIA SEEDLtd produced a TSR of 27% over the last year. Unfortunately this falls short of the market return of around 38%. On the bright side that gain is actually better than the average return of 15% over the last three years, implying that the company is doing better recently. If the share price is up as a result of improved business performance, then this kind of improvement may be sustained. It's always interesting to track share price performance over the longer term. But to understand ASIA SEEDLtd better, we need to consider many other factors. Take risks, for example - ASIA SEEDLtd has 5 warning signs (and 2 which don't sit too well with us) we think you should know about.

But note: ASIA SEEDLtd 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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