SD Biotechnologies' (KOSDAQ:217480) Stock Price Has Reduced 58% In The Past Three Years

Investing in stocks inevitably means buying into some companies that perform poorly. But the long term shareholders of SD Biotechnologies Co., Ltd. (KOSDAQ:217480) have had an unfortunate run in the last three years. Regrettably, they have had to cope with a 58% drop in the share price over that period. The falls have accelerated recently, with the share price down 15% in the last three months.

See our latest analysis for SD Biotechnologies

SD Biotechnologies isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over three years, SD Biotechnologies grew revenue at 9.7% per year. That's a pretty good rate of top-line growth. That contrasts with the weak share price, which has fallen 17% compounded, over three years. The market must have had really high expectations to be disappointed with this progress. It would be well worth taking a closer look at the company, to determine growth trends (and balance sheet strength).

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

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

Over the last year SD Biotechnologies shareholders have received a TSR of 6.6%. Unfortunately this falls short of the market return of around 28%. On the bright side, that's certainly better than the yearly loss of about 16% endured over the last three years, implying that the company is doing better recently. 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. Take risks, for example - SD Biotechnologies has 2 warning signs (and 1 which can't be ignored) we think you should know about.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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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