Investors three-year losses continue as RSUPPORT (KOSDAQ:131370) dips a further 11% this week, earnings continue to decline

If you are building a properly diversified stock portfolio, the chances are some of your picks will perform badly. But long term RSUPPORT Co., Ltd. (KOSDAQ:131370) shareholders have had a particularly rough ride in the last three year. Unfortunately, they have held through a 66% decline in the share price in that time. The more recent news is of little comfort, with the share price down 34% in a year. Shareholders have had an even rougher run lately, with the share price down 29% in the last 90 days.

Since RSUPPORT has shed ₩16b from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics.

View our latest analysis for RSUPPORT

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During the three years that the share price fell, RSUPPORT's earnings per share (EPS) dropped by 32% each year. This change in EPS is reasonably close to the 30% average annual decrease in the share price. So it seems like sentiment towards the stock hasn't changed all that much over time. It seems like the share price is reflecting the declining earnings per share.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

It might be well worthwhile taking a look at our free report on RSUPPORT's earnings, revenue and cash flow.

A Different Perspective

We regret to report that RSUPPORT shareholders are down 34% for the year (even including dividends). Unfortunately, that's worse than the broader market decline of 3.4%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Longer term investors wouldn't be so upset, since they would have made 0.2%, 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 RSUPPORT better, we need to consider many other factors. Even so, be aware that RSUPPORT is showing 2 warning signs in our investment analysis , and 1 of those is potentially serious...

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.