ChabiotechLtd (KOSDAQ:085660) delivers shareholders 4.9% CAGR over 5 years, surging 8.3% in the last week alone

The main point of investing for the long term is to make money. Furthermore, you'd generally like to see the share price rise faster than the market. But Chabiotech Co.,Ltd. (KOSDAQ:085660) has fallen short of that second goal, with a share price rise of 27% over five years, which is below the market return. The last year has been disappointing, with the stock price down 7.5% in that time.

Since it's been a strong week for ChabiotechLtd shareholders, let's have a look at trend of the longer term fundamentals.

View our latest analysis for ChabiotechLtd

ChabiotechLtd 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. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

For the last half decade, ChabiotechLtd can boast revenue growth at a rate of 13% per year. That's a fairly respectable growth rate. While the share price has gained 5% per year for five years, that's hardly amazing considering the market also rose. Arguably, that means, the market (previously) expected stronger growth from the company.

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

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

A Different Perspective

Investors in ChabiotechLtd had a tough year, with a total loss of 7.5%, against a market gain of about 2.7%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 5% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand ChabiotechLtd better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for ChabiotechLtd you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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.