Yahoo Finance Shareholders in Intellicheck (NASDAQ:IDN) have lost 66%, as stock drops 18% this past week
This month, we saw the Intellicheck, Inc. (NASDAQ:IDN) up an impressive 58%. Meanwhile over the last three years the stock has dropped hard. In that time, the share price dropped 66%. Some might say the recent bounce is to be expected after such a bad drop. While many would remain nervous, there could be further gains if the business can put its best foot forward.
If the past week is anything to go by, investor sentiment for Intellicheck isn't positive, so let's see if there's a mismatch between fundamentals and the share price.
Check out our latest analysis for Intellicheck
Given that Intellicheck 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. 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, Intellicheck grew revenue at 15% per year. That's a pretty good rate of top-line growth. That contrasts with the weak share price, which has fallen 18% compounded, over three years. The market must have had really high expectations to be disappointed with this progress. It would be well worth taking a closer look at the company, to determine growth trends (and balance sheet strength).
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 Intellicheck's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
Intellicheck's TSR for the year was broadly in line with the market average, at 24%. To take a positive view, the gain is pleasing, and it sure beats annualized TSR loss of 3%, which was endured over half a decade. We're pretty skeptical of turnaround stories, but it's good to see the recent share price recovery. 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 Intellicheck you should be aware of, and 1 of them can't be ignored.
Of course Intellicheck 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 American 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.
