Further weakness as Seoul Viosys (KOSDAQ:092190) drops 11% this week, taking five-year losses to 88%

Some stocks are best avoided. We really hate to see fellow investors lose their hard-earned money. Spare a thought for those who held Seoul Viosys Co., Ltd (KOSDAQ:092190) for five whole years - as the share price tanked 88%. We also note that the stock has performed poorly over the last year, with the share price down 40%. Shareholders have had an even rougher run lately, with the share price down 26% in the last 90 days. While a drop like that is definitely a body blow, money isn't as important as health and happiness.

If the past week is anything to go by, investor sentiment for Seoul Viosys isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

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Because Seoul Viosys 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 it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last half decade, Seoul Viosys saw its revenue increase by 11% per year. That's a fairly respectable growth rate. So it is unexpected to see the stock down 13% per year in the last five years. The truth is that the growth might be below expectations, and investors are probably worried about the continual losses.

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

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

A Different Perspective

While the broader market gained around 32% in the last year, Seoul Viosys shareholders lost 40%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 13% per year over five years. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. It's always interesting to track share price performance over the longer term. But to understand Seoul Viosys better, we need to consider many other factors. For example, we've discovered 3 warning signs for Seoul Viosys (1 shouldn't be ignored!) that you should be aware of before investing here.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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.