Even after rising 11% this past week, Vivozon Pharmaceutical (KOSDAQ:082800) shareholders are still down 43% over the past three years

Simply Wall St · 09/27 21:51

It is doubtless a positive to see that the Vivozon Pharmaceutical Co., Ltd. (KOSDAQ:082800) share price has gained some 33% in the last three months. But that cannot eclipse the less-than-impressive returns over the last three years. Truth be told the share price declined 43% in three years and that return, Dear Reader, falls short of what you could have got from passive investing with an index fund.

While the last three years has been tough for Vivozon Pharmaceutical 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.

See our latest analysis for Vivozon Pharmaceutical

Because Vivozon Pharmaceutical 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. 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.

Over three years, Vivozon Pharmaceutical grew revenue at 14% per year. That's a pretty good rate of top-line growth. Shareholders have seen the share price fall at 13% per year, for three years. So the market has definitely lost some love for the stock. However, that's in the past now, and it's the future is more important - and the future looks brighter (based on revenue, anyway).

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

earnings-and-revenue-growth
KOSDAQ:A082800 Earnings and Revenue Growth September 27th 2024

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

A Different Perspective

It's nice to see that Vivozon Pharmaceutical shareholders have received a total shareholder return of 33% over the last year. Notably the five-year annualised TSR loss of 7% per year compares very unfavourably with the recent share price performance. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the 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 1 warning sign for Vivozon Pharmaceutical you should be aware of.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on South Korean exchanges.