Would Shareholders Who Purchased 3S KOREA's (KOSDAQ:060310) Stock Year Be Happy With The Share price Today?

The simplest way to benefit from a rising market is to buy an index fund. Active investors aim to buy stocks that vastly outperform the market - but in the process, they risk under-performance. Unfortunately the 3S KOREA Co., Ltd. (KOSDAQ:060310) share price slid 23% over twelve months. That contrasts poorly with the market return of 34%. On the bright side, the stock is actually up 17% in the last three years. And the share price decline continued over the last week, dropping some 5.7%.

See our latest analysis for 3S KOREA

3S KOREA isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In just one year 3S KOREA saw its revenue fall by 37%. That looks pretty grim, at a glance. Shareholders have seen the share price drop 23% in that time. What would you expect when revenue is falling, and it doesn't make a profit? It's hard to escape the conclusion that buyers must envision either growth down the track, cost cutting, or both.

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

If you are thinking of buying or selling 3S KOREA stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Investors in 3S KOREA had a tough year, with a total loss of 23%, against a market gain of about 34%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 1.4% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand 3S KOREA better, we need to consider many other factors. For example, we've discovered 2 warning signs for 3S KOREA (1 is concerning!) that you should be aware of before investing here.

Of course 3S KOREA may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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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