Shinpoong PharmaceuticalLtd (KRX:019170 shareholders incur further losses as stock declines 11% this week, taking three-year losses to 62%

Investing in stocks inevitably means buying into some companies that perform poorly. But the last three years have been particularly tough on longer term Shinpoong Pharmaceutical Co.,Ltd (KRX:019170) shareholders. Sadly for them, the share price is down 62% in that time. The more recent news is of little comfort, with the share price down 32% in a year. Furthermore, it's down 19% in about a quarter. That's not much fun for holders.

Given the past week has been tough on shareholders, let's investigate the fundamentals and see what we can learn.

See our latest analysis for Shinpoong PharmaceuticalLtd

Shinpoong PharmaceuticalLtd 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. Shareholders of unprofitable companies usually desire strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Over three years, Shinpoong PharmaceuticalLtd grew revenue at 3.8% per year. That's not a very high growth rate considering it doesn't make profits. This uninspiring revenue growth has no doubt helped send the share price lower; it dropped 17% during the period. It can be well worth keeping an eye on growth stocks that disappoint the market, because sometimes they re-accelerate. After all, growing a business isn't easy, and the process will not always be smooth.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

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

A Different Perspective

While the broader market lost about 2.5% in the twelve months, Shinpoong PharmaceuticalLtd shareholders did even worse, losing 32%. 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. On the bright side, long term shareholders have made money, with a gain of 3% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand Shinpoong PharmaceuticalLtd better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Shinpoong PharmaceuticalLtd you should be aware of.

We will like Shinpoong PharmaceuticalLtd 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.