MDS Tech (KOSDAQ:086960 shareholders incur further losses as stock declines 10% this week, taking three-year losses to 62%

Investing in stocks inevitably means buying into some companies that perform poorly. But the last three years have been particularly tough on longer term MDS Tech Inc. (KOSDAQ:086960) shareholders. Unfortunately, they have held through a 62% decline in the share price in that time. And the share price decline continued over the last week, dropping some 10%.

With the stock having lost 10% 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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Given that MDS Tech only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. It would be hard to believe in a more profitable future without growing revenues.

In the last three years, MDS Tech saw its revenue grow by 5.2% per year, compound. Given it's losing money in pursuit of growth, we are not really impressed with that. This uninspiring revenue growth has no doubt helped send the share price lower; it dropped 17% during the period. When a stock falls hard like this, some investors like to add the company to a watchlist (in case the business recovers, longer term). After all, growing a business isn't easy, and the process will not always be smooth.

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 MDS Tech's financial health with this free report on its balance sheet.

A Different Perspective

MDS Tech shareholders are up 30% for the year. Unfortunately this falls short of the market return. The silver lining is that the gain was actually better than the average annual return of 1.9% per year over five year. It is possible that returns will improve along with the business fundamentals. It's always interesting to track share price performance over the longer term. But to understand MDS Tech better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for MDS Tech you should be aware of.

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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.