Further weakness as ADTechnologyLtd (KOSDAQ:200710) drops 11% this week, taking one-year losses to 36%

It's easy to match the overall market return by buying an index fund. Active investors aim to buy stocks that vastly outperform the market - but in the process, they risk under-performance. Investors in ADTechnology Co.,Ltd. (KOSDAQ:200710) have tasted that bitter downside in the last year, as the share price dropped 36%. That's well below the market return of 11%. Looking at the longer term, the stock is down 29% over three years. Shareholders have had an even rougher run lately, with the share price down 34% in the last 90 days.

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

See our latest analysis for ADTechnologyLtd

Because ADTechnologyLtd 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. Shareholders of unprofitable companies usually desire strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.

In the last year ADTechnologyLtd saw its revenue grow by 32%. That's definitely a respectable growth rate. Unfortunately that wasn't good enough to stop the share price dropping 36%. This implies the market was expecting better growth. However, that's in the past now, and it's the future that matters most.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

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

A Different Perspective

Investors in ADTechnologyLtd had a tough year, with a total loss of 36%, against a market gain of about 11%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 1.3% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Case in point: We've spotted 1 warning sign for ADTechnologyLtd you should be aware of.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation).

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.