Reflecting on LS Networks' (KRX:000680) Share Price Returns Over The Last Five Years

LS Networks Corporation Limited (KRX:000680) shareholders should be happy to see the share price up 18% in the last quarter. But if you look at the last five years the returns have not been good. In fact, the share price is down 18%, which falls well short of the return you could get by buying an index fund.

Check out our latest analysis for LS Networks

Because LS Networks made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Over half a decade LS Networks reduced its trailing twelve month revenue by 14% for each year. That puts it in an unattractive cohort, to put it mildly. It seems pretty reasonable to us that the share price dipped 3% per year in that time. We doubt many shareholders are delighted with this share price performance. It is possible for businesses to bounce back but as Buffett says, 'turnarounds seldom turn'.

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

Take a more thorough look at LS Networks' financial health with this free report on its balance sheet.

A Different Perspective

LS Networks provided a TSR of 10% over the last twelve months. But that was short of the market average. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 3% endured over half a decade. It could well be that the business is stabilizing. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.

But note: LS Networks 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 KR exchanges.

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