IokCompany's (KOSDAQ:078860) Stock Price Has Reduced 74% In The Past Five Years

Some stocks are best avoided. We don't wish catastrophic capital loss on anyone. Anyone who held IokCompany Co., Ltd. (KOSDAQ:078860) for five years would be nursing their metaphorical wounds since the share price dropped 74% in that time. Furthermore, it's down 30% in about a quarter. That's not much fun for holders.

View our latest analysis for IokCompany

Given that IokCompany 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. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last half decade, IokCompany saw its revenue increase by 33% per year. That's well above most other pre-profit companies. So on the face of it we're really surprised to see the share price has averaged a fall of 12% each year, in the same time period. It could be that the stock was over-hyped before. While there might be an opportunity here, you'd want to take a close look at the balance sheet strength.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

IokCompany shareholders gained a total return of 15% during the year. Unfortunately this falls short of the market return. But at least that's still a gain! Over five years the TSR has been a reduction of 12% per year, over five years. It could well be that the business is stabilizing. It's always interesting to track share price performance over the longer term. But to understand IokCompany better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for IokCompany (of which 1 makes us a bit uncomfortable!) you should know about.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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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