Yahoo Finance Those Who Purchased BIO-key International (NASDAQ:BKYI) Shares Three Years Ago Have A 74% Loss To Show For It
BIO-key International, Inc. (NASDAQ:BKYI) shareholders will doubtless be very grateful to see the share price up 57% in the last month. But that doesn't change the fact that the returns over the last three years have been stomach churning. Indeed, the share price is down a whopping 74% in the last three years. So it's about time shareholders saw some gains. Only time will tell if the company can sustain the turnaround.
View our latest analysis for BIO-key International
Given that BIO-key International 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 expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
In the last three years, BIO-key International saw its revenue grow by 2.5% per year, compound. That's not a very high growth rate considering it doesn't make profits. But the share price crash at 36% per year does seem a bit harsh! While we're definitely wary of the stock, after that kind of performance, it could be an over-reaction. Before considering a purchase, take a look at the losses the company is racking up.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
Take a more thorough look at BIO-key International's financial health with this free report on its balance sheet.
A Different Perspective
While the broader market gained around 23% in the last year, BIO-key International shareholders lost 32%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 20% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For instance, we've identified 6 warning signs for BIO-key International (1 is concerning) that you should be aware of.
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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