ContentreeJoongAng (KRX:036420 investor three-year losses grow to 66% as the stock sheds ₩36b this past week

ContentreeJoongAng corp. (KRX:036420) shareholders will doubtless be very grateful to see the share price up 48% in the last quarter. Meanwhile over the last three years the stock has dropped hard. Indeed, the share price is down a tragic 66% in the last three years. Some might say the recent bounce is to be expected after such a bad drop. Perhaps the company has turned over a new leaf.

After losing 14% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.

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Because ContentreeJoongAng 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. 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 three years, ContentreeJoongAng saw its revenue grow by 6.3% per year, compound. Given it's losing money in pursuit of growth, we are not really impressed with that. This uninspiring revenue growth has no doubt helped send the share price lower; it dropped 18% during the period. When a stock falls hard like this, some investors like to add the company to a watchlist (in case the business recovers, longer term). Keep in mind it isn't unusual for good businesses to have a tough time or a couple of uninspiring years.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

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

A Different Perspective

ContentreeJoongAng provided a TSR of 5.6% over the last twelve months. Unfortunately this falls short of the market return. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 10% endured over half a decade. It could well be that the business is stabilizing. You could get a better understanding of ContentreeJoongAng's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

But note: ContentreeJoongAng may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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.