PanGen Biotech's (KOSDAQ:222110) Stock Price Has Reduced 33% In The Past Three Years

While not a mind-blowing move, it is good to see that the PanGen Biotech Inc. (KOSDAQ:222110) share price has gained 13% in the last three months. But that doesn't help the fact that the three year return is less impressive. Truth be told the share price declined 33% in three years and that return, Dear Reader, falls short of what you could have got from passive investing with an index fund.

Check out our latest analysis for PanGen Biotech

Given that PanGen Biotech 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last three years, PanGen Biotech saw its revenue grow by 20% per year, compound. That is faster than most pre-profit companies. While its revenue increased, the share price dropped at a rate of 10% per year. That seems like an unlucky result for holders. It seems likely that actual growth fell short of shareholders' expectations. Still, with high hopes now tempered, now might prove to be an opportunity to buy.

The graphic below depicts how earnings and revenue have changed over time (unveil 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

PanGen Biotech shareholders have gained 29% over twelve months. This isn't far from the market return of 31%. Given the three-year TSR of 10% per year, shareholders probably aren't too concerned by the recent gain! It could well be that the business is getting back on track. It's always interesting to track share price performance over the longer term. But to understand PanGen Biotech better, we need to consider many other factors. For example, we've discovered 2 warning signs for PanGen Biotech (1 is potentially serious!) that you should be aware of before investing here.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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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