Even after rising 24% this past week, SIMMTECH (KOSDAQ:222800) shareholders are still down 67% over the past three years

This week we saw the SIMMTECH Co., Ltd. (KOSDAQ:222800) share price climb by 24%. But over the last three years we've seen a quite serious decline. Regrettably, the share price slid 68% in that period. So it's good to see it climbing back up. Perhaps the company has turned over a new leaf.

The recent uptick of 24% could be a positive sign of things to come, so let's take a look at historical fundamentals.

See our latest analysis for SIMMTECH

Given that SIMMTECH didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. 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 would hope for good top-line growth to make up for the lack of earnings.

Over the last three years, SIMMTECH's revenue dropped 10.0% per year. That's not what investors generally want to see. The share price decline of 19% compound, over three years, is understandable given the company doesn't have profits to boast of, and revenue is moving in the wrong direction. Of course, it's the future that will determine whether today's price is a good one. We'd be pretty wary of this one until it makes a profit, because we don't specialize in finding turnaround situations.

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

This free interactive report on SIMMTECH's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

While the broader market lost about 4.3% in the twelve months, SIMMTECH shareholders did even worse, losing 57% (even including dividends). Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Longer term investors wouldn't be so upset, since they would have made 2%, each year, over five years. 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. It's always interesting to track share price performance over the longer term. But to understand SIMMTECH better, we need to consider many other factors. Take risks, for example - SIMMTECH has 2 warning signs (and 1 which can't be ignored) we think you should know about.

We will like SIMMTECH 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.