Intelligent Ultrasound Group plc (LON:IUG) shareholders might be concerned after seeing the share price drop 16% in the last week. On the bright side the returns have been quite good over the last half decade. Its return of 50% has certainly bested the market return!
Since the long term performance has been good but there's been a recent pullback of 16%, let's check if the fundamentals match the share price.
See our latest analysis for Intelligent Ultrasound Group
Intelligent Ultrasound Group wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
For the last half decade, Intelligent Ultrasound Group can boast revenue growth at a rate of 16% per year. Even measured against other revenue-focussed companies, that's a good result. It's good to see that the stock has 8%, but not entirely surprising given revenue shows strong growth. If the strong revenue growth continues, we'd expect the share price to follow, in time. Opportunity lies where the market hasn't fully priced growth in the underlying business.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
If you are thinking of buying or selling Intelligent Ultrasound Group stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
Intelligent Ultrasound Group shareholders are down 12% for the year, but the market itself is up 5.7%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 8% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand Intelligent Ultrasound Group better, we need to consider many other factors. For example, we've discovered 3 warning signs for Intelligent Ultrasound Group (1 is a bit unpleasant!) that you should be aware of before investing here.
We will like Intelligent Ultrasound Group better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.