If You Had Bought E Investment&Development's (KRX:093230) Shares Five Years Ago You Would Be Down 69%

Statistically speaking, long term investing is a profitable endeavour. But no-one is immune from buying too high. To wit, the E Investment&Development Co., Ltd. (KRX:093230) share price managed to fall 69% over five long years. We certainly feel for shareholders who bought near the top. More recently, the share price has dropped a further 25% in a month.

View our latest analysis for E Investment&Development

Given that E Investment&Development didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last half decade, E Investment&Development saw its revenue increase by 33% per year. That's better than most loss-making companies. Unfortunately for shareholders the share price has dropped 11% per year - disappointing considering the growth. This could mean high expectations have been tempered, potentially because investors are looking to the bottom line. If you think the company can keep up its revenue growth, you'd have to consider the possibility that there's an opportunity here.

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

Take a more thorough look at E Investment&Development's financial health with this free report on its balance sheet.

A Different Perspective

E Investment&Development provided a TSR of 24% over the last twelve months. But that was short of the market average. But at least that's still a gain! Over five years the TSR has been a reduction of 11% per year, over five years. So this might be a sign the business has turned its fortunes around. It's always interesting to track share price performance over the longer term. But to understand E Investment&Development better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for E Investment&Development you should know about.

We will like E Investment&Development better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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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