SELVAS Healthcare's (KOSDAQ:208370) Stock Price Has Reduced 62% In The Past Three Years

SELVAS Healthcare, Inc. (KOSDAQ:208370) shareholders should be happy to see the share price up 19% in the last quarter. But over the last three years we've seen a quite serious decline. 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.

See our latest analysis for SELVAS Healthcare

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

SELVAS Healthcare became profitable within the last five years. We would usually expect to see the share price rise as a result. So given the share price is down it's worth checking some other metrics too.

We think that the revenue decline over three years, at a rate of 12% per year, probably had some shareholders looking to sell. After all, if revenue keeps shrinking, it may be difficult to find earnings growth in the future.

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

If you are thinking of buying or selling SELVAS Healthcare stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

SELVAS Healthcare shareholders are up 25% for the year. Unfortunately this falls short of the market return of around 47%. The silver lining is that the recent rise is far preferable to the annual loss of 18% that shareholders have suffered over the last three years. 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. Case in point: We've spotted 2 warning signs for SELVAS Healthcare you should be aware of, and 1 of them shouldn't be ignored.

We will like SELVAS Healthcare better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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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