RN2 Technologies' (KOSDAQ:148250) growing losses don't faze investors as the stock spikes 17% this past week

These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But you can significantly boost your returns by picking above-average stocks. To wit, the RN2 Technologies Co., Ltd. (KOSDAQ:148250) share price is 92% higher than it was a year ago, much better than the market decline of around 7.7% (not including dividends) in the same period. If it can keep that out-performance up over the long term, investors will do very well! In contrast, the longer term returns are negative, since the share price is 23% lower than it was three years ago.

Since it's been a strong week for RN2 Technologies shareholders, let's have a look at trend of the longer term fundamentals.

We've discovered 4 warning signs about RN2 Technologies. View them for free.

RN2 Technologies wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally hope to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.

RN2 Technologies actually shrunk its revenue over the last year, with a reduction of 2.6%. Despite the lack of revenue growth, the stock has returned a solid 92% the last twelve months. To us that means that there isn't a lot of correlation between the past revenue performance and the share price, but a closer look at analyst forecasts and the bottom line may well explain a lot.

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

If you are thinking of buying or selling RN2 Technologies stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's good to see that RN2 Technologies has rewarded shareholders with a total shareholder return of 94% in the last twelve months. That's including the dividend. That certainly beats the loss of about 4% per year over the last half decade. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand RN2 Technologies better, we need to consider many other factors. For example, we've discovered 4 warning signs for RN2 Technologies (2 are concerning!) that you should be aware of before investing here.

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.