Raonsecure (KOSDAQ:042510) investors are sitting on a loss of 63% if they invested three years ago

Investing in stocks inevitably means buying into some companies that perform poorly. But the last three years have been particularly tough on longer term Raonsecure Co., Ltd. (KOSDAQ:042510) shareholders. So they might be feeling emotional about the 63% share price collapse, in that time. And more recent buyers are having a tough time too, with a drop of 29% in the last year. Even worse, it's down 13% in about a month, which isn't fun at all. But this could be related to poor market conditions -- stocks are down 9.0% in the same time.

So let's have a look and see if the longer term performance of the company has been in line with the underlying business' progress.

Check out our latest analysis for Raonsecure

Because Raonsecure 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. When a company doesn't make profits, we'd generally hope to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over three years, Raonsecure grew revenue at 7.7% per year. That's not a very high growth rate considering it doesn't make profits. It's likely this weak growth has contributed to an annualised return of 18% for the last three years. When a stock falls hard like this, some investors like to add the company to a watchlist (in case the business recovers, longer term). Keep in mind it isn't unusual for good businesses to have a tough time or a couple of uninspiring years.

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 Raonsecure stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

While the broader market lost about 3.7% in the twelve months, Raonsecure shareholders did even worse, losing 29%. 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. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 7% over the last half decade. 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 Raonsecure better, we need to consider many other factors. Even so, be aware that Raonsecure is showing 3 warning signs in our investment analysis , you should know about...

But note: Raonsecure may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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.