Yahoo Finance The one-year returns have been strong for Intelligent Monitoring Group (ASX:IMB) shareholders despite underlying losses increasing
Unfortunately, investing is risky - companies can and do go bankrupt. But when you pick a company that is really flourishing, you can make more than 100%. Take, for example Intelligent Monitoring Group Limited (ASX:IMB). Its share price is already up an impressive 156% in the last twelve months. Also pleasing for shareholders was the 60% gain in the last three months. In contrast, the longer term returns are negative, since the share price is 92% lower than it was three years ago.
On the back of a solid 7-day performance, let's check what role the company's fundamentals have played in driving long term shareholder returns.
View our latest analysis for Intelligent Monitoring Group
Given that Intelligent Monitoring Group 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. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Over the last twelve months, Intelligent Monitoring Group's revenue grew by 42%. We respect that sort of growth, no doubt. The revenue growth is decent but the share price had an even better year, gaining 156%. Given that the business has made good progress on the top line, it would be worth taking a look at its path to profitability. But investors need to be wary of how the 'fear of missing out' could influence them to buy without doing thorough research.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
This free interactive report on Intelligent Monitoring Group's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
We're pleased to report that Intelligent Monitoring Group shareholders have received a total shareholder return of 156% over one year. That certainly beats the loss of about 15% 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 Intelligent Monitoring Group better, we need to consider many other factors. To that end, you should learn about the 5 warning signs we've spotted with Intelligent Monitoring Group (including 4 which make us uncomfortable) .
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Australian 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.
