Would Shareholders Who Purchased iMBCLtd's (KOSDAQ:052220) Stock Five Years Be Happy With The Share price Today?

While it may not be enough for some shareholders, we think it is good to see the iMBC Co.,Ltd. (KOSDAQ:052220) share price up 14% in a single quarter. But if you look at the last five years the returns have not been good. In fact, the share price is down 43%, which falls well short of the return you could get by buying an index fund.

View our latest analysis for iMBCLtd

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

iMBCLtd became profitable within the last five years. Most would consider that to be a good thing, so it's counter-intuitive to see the share price declining. Other metrics may better explain the share price move.

Arguably, the revenue drop of 5.5% a year for half a decade suggests that the company can't grow in the long term. That could explain the weak share price.

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

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

A Different Perspective

iMBCLtd's TSR for the year was broadly in line with the market average, at 25%. The silver lining is that the share price is up in the short term, which flies in the face of the annualised loss of 7% over the last five years. We're pretty skeptical of turnaround stories, but it's good to see the recent share price recovery. It's always interesting to track share price performance over the longer term. But to understand iMBCLtd better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with iMBCLtd (including 1 which is shouldn't be ignored) .

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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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