Inscobee (KRX:006490 shareholders incur further losses as stock declines 13% this week, taking five-year losses to 69%

We think intelligent long term investing is the way to go. But along the way some stocks are going to perform badly. Zooming in on an example, the Inscobee., Inc. (KRX:006490) share price dropped 69% in the last half decade. That is extremely sub-optimal, to say the least. And it's not just long term holders hurting, because the stock is down 45% in the last year. The falls have accelerated recently, with the share price down 17% in the last three months.

Since Inscobee has shed ₩13b from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics.

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Given that Inscobee 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. When a company doesn't make profits, we'd generally hope to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last half decade, Inscobee saw its revenue increase by 14% per year. That's a fairly respectable growth rate. The share price, meanwhile, has fallen 11% compounded, over five years. That suggests the market is disappointed with the current growth rate. That could lead to an opportunity if the company is going to become profitable sooner rather than later.

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

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

A Different Perspective

Inscobee shareholders are down 45% for the year, but the market itself is up 58%. 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 11% over the last half decade. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. 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. Case in point: We've spotted 2 warning signs for Inscobee you should be aware of, and 1 of them is potentially serious.

Of course Inscobee 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 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.