Despite shrinking by ₩9.4b in the past week, KNW (KOSDAQ:105330) shareholders are still up 55% over 1 year

The KNW Co., Ltd. (KOSDAQ:105330) share price has had a bad week, falling 10%. Looking on the brighter side, the stock is actually up over twelve months. But to be blunt its return of 55% fall short of what you could have got from an index fund (around 63%).

Although KNW has shed ₩9.4b from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.

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Given that KNW didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. When a company doesn't make profits, we'd generally hope to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

KNW actually shrunk its revenue over the last year, with a reduction of 4.6%. Given the revenue reduction the modest 55% share price rise over the year seems pretty decent. Generally we're pretty unenthusiastic about loss making stocks that are not growing revenue.

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

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

A Different Perspective

KNW shareholders are up 55% for the year. But that was short of the market average. But at least that's still a gain! Over five years the TSR has been a reduction of 1.3% per year, over five years. So this might be a sign the business has turned its fortunes around. It's always interesting to track share price performance over the longer term. But to understand KNW better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with KNW , and understanding them should be part of your investment process.

We will like KNW better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) 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 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.