Reflecting on DA TechnologyLtd's (KOSDAQ:196490) Share Price Returns Over The Last Three Years

In order to justify the effort of selecting individual stocks, it's worth striving to beat the returns from a market index fund. But in any portfolio, there are likely to be some stocks that fall short of that benchmark. We regret to report that long term DA Technology Co.,Ltd. (KOSDAQ:196490) shareholders have had that experience, with the share price dropping 50% in three years, versus a market return of about 38%. Unfortunately the share price momentum is still quite negative, with prices down 12% in thirty days.

See our latest analysis for DA TechnologyLtd

Because DA TechnologyLtd 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Over the last three years, DA TechnologyLtd's revenue dropped 5.4% per year. That is not a good result. The annual decline of 14% per year in that period has clearly disappointed holders. That makes sense given the lack of either profits or revenue growth. Of course, sentiment could become too negative, and the company may actually be making progress to profitability.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

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

A Different Perspective

Investors in DA TechnologyLtd had a tough year, with a total loss of 13%, against a market gain of about 47%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 4% 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 DA TechnologyLtd better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for DA TechnologyLtd you should be aware of.

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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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