Further weakness as CellumedLtd (KOSDAQ:049180) drops 14% this week, taking three-year losses to 57%

It is a pleasure to report that the Cellumed Co.,Ltd. (KOSDAQ:049180) is up 87% in the last quarter. But over the last three years we've seen a quite serious decline. Regrettably, the share price slid 57% in that period. So it is really good to see an improvement. The rise has some hopeful, but turnarounds are often precarious.

If the past week is anything to go by, investor sentiment for CellumedLtd isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

Check out our latest analysis for CellumedLtd

CellumedLtd 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over three years, CellumedLtd grew revenue at 3.2% per year. That's not a very high growth rate considering it doesn't make profits. This uninspiring revenue growth has no doubt helped send the share price lower; it dropped 16% during the period. It can be well worth keeping an eye on growth stocks that disappoint the market, because sometimes they re-accelerate. After all, growing a business isn't easy, and the process will not always be smooth.

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

Take a more thorough look at CellumedLtd's financial health with this free report on its balance sheet.

A Different Perspective

It's nice to see that CellumedLtd shareholders have received a total shareholder return of 23% over the last year. That certainly beats the loss of about 7% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. 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 example, we've discovered 2 warning signs for CellumedLtd (1 is potentially serious!) that you should be aware of before investing here.

Of course CellumedLtd 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 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.