DUKSAN TECHOPIALtd (KOSDAQ:317330 investor one-year losses grow to 47% as the stock sheds ₩42b this past week

It's easy to match the overall market return by buying an index fund. While individual stocks can be big winners, plenty more fail to generate satisfactory returns. That downside risk was realized by DUKSAN TECHOPIA Co.,Ltd. (KOSDAQ:317330) shareholders over the last year, as the share price declined 47%. That contrasts poorly with the market return of 51%. On the other hand, the stock is actually up 3.3% over three years. More recently, the share price has dropped a further 28% in a month.

With the stock having lost 11% in the past week, it's worth taking a look at business performance and seeing if there's any red flags.

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Because DUKSAN TECHOPIALtd 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 twelve months, DUKSAN TECHOPIALtd increased its revenue by 3.0%. That's not a very high growth rate considering it doesn't make profits. Given this fairly low revenue growth (and lack of profits), it's not particularly surprising to see the stock down 47% in a year. It's important not to lose sight of the fact that profitless companies must grow. But if you buy a loss making company then you could become a loss making investor.

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

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

While the broader market gained around 51% in the last year, DUKSAN TECHOPIALtd shareholders lost 47%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 1.6%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand DUKSAN TECHOPIALtd better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with DUKSAN TECHOPIALtd .

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.