ASTORYLtd (KOSDAQ:241840) adds ₩8.3b to market cap in the past 7 days, though investors from three years ago are still down 70%

ASTORY Co.,Ltd (KOSDAQ:241840) shareholders should be happy to see the share price up 29% in the last quarter. But only the myopic could ignore the astounding decline over three years. To wit, the share price sky-dived 70% in that time. So it sure is nice to see a bit of an improvement. Only time will tell if the company can sustain the turnaround.

On a more encouraging note the company has added ₩8.3b to its market cap in just the last 7 days, so let's see if we can determine what's driven the three-year loss for shareholders.

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ASTORYLtd wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. 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.

In the last three years ASTORYLtd saw its revenue shrink by 29% per year. That means its revenue trend is very weak compared to other loss making companies. And as you might expect the share price has been weak too, dropping at a rate of 19% per year. We prefer leave it to clowns to try to catch falling knives, like this stock. There is a good reason that investors often describe buying a sharply falling stock price as 'trying to catch a falling knife'. Think about it.

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

We regret to report that ASTORYLtd shareholders are down 13% for the year. Unfortunately, that's worse than the broader market decline of 10%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Longer term investors wouldn't be so upset, since they would have made 2%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand ASTORYLtd better, we need to consider many other factors. Take risks, for example - ASTORYLtd has 3 warning signs (and 1 which is a bit unpleasant) we think you should know about.

But note: ASTORYLtd may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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.