The Raonsecure (KOSDAQ:042510) Share Price Has Gained 27% And Shareholders Are Hoping For More

We believe investing is smart because history shows that stock markets go higher in the long term. But if you choose that path, you're going to buy some stocks that fall short of the market. For example, the Raonsecure Co., Ltd. (KOSDAQ:042510), share price is up over the last year, but its gain of 27% trails the market return. Unfortunately the longer term returns are not so good, with the stock falling 16% in the last three years.

See our latest analysis for Raonsecure

Raonsecure isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Raonsecure grew its revenue by 29% last year. That's a fairly respectable growth rate. The share price gain of 27% in that time is better than nothing, but far from outlandish Its possible that shareholders had expected higher growth. But this one could be a worth watching - a maiden profit would likely catch the market's attention.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

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

A Different Perspective

Raonsecure shareholders gained a total return of 27% during the year. But that was short of the market average. But at least that's still a gain! Over five years the TSR has been a reduction of 4% per year, over five years. It could well be that the business is stabilizing. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Raonsecure (of which 2 are potentially serious!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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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