Even after rising 11% this past week, HanWool Materials Science (KOSDAQ:091440) shareholders are still down 40% over the past year

HanWool Materials Science, Inc. (KOSDAQ:091440) shareholders will doubtless be very grateful to see the share price up 38% in the last quarter. But that doesn't change the reality of under-performance over the last twelve months. After all, the share price is down 40% in the last year, significantly under-performing the market.

While the last year has been tough for HanWool Materials Science shareholders, this past week has shown signs of promise. So let's look at the longer term fundamentals and see if they've been the driver of the negative returns.

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Because HanWool Materials Science 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. Shareholders of unprofitable companies usually desire strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

HanWool Materials Science's revenue didn't grow at all in the last year. In fact, it fell 36%. That looks pretty grim, at a glance. Shareholders have seen the share price drop 40% 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.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

This free interactive report on HanWool Materials Science's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Investors in HanWool Materials Science had a tough year, with a total loss of 40%, against a market gain of about 62%. 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 3% 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. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - HanWool Materials Science has 5 warning signs (and 3 which are concerning) we think you should know about.

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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.