It hasn't been the best quarter for EMVision Medical Devices Ltd (ASX:EMV) shareholders, since the share price has fallen 29% in that time. But in three years the returns have been great. Indeed, the share price is up a very strong 166% in that time. So the recent fall in the share price should be viewed in that context. The fundamental business performance will ultimately dictate whether the top is in, or if this is a stellar buying opportunity.
So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress.
View our latest analysis for EMVision Medical Devices
Given that EMVision Medical Devices 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Over the last three years EMVision Medical Devices has grown its revenue at 47% annually. That's much better than most loss-making companies. Along the way, the share price gained 39% per year, a solid pop by our standards. But it does seem like the market is paying attention to strong revenue growth. That's not to say we think the share price is too high. In fact, it might be worth keeping an eye on this one.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
This free interactive report on EMVision Medical Devices' balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
The last twelve months weren't great for EMVision Medical Devices shares, which performed worse than the market, costing holders 37%. The market shed around 1.3%, no doubt weighing on the stock price. Fortunately the longer term story is brighter, with total returns averaging about 39% per year over three years. The recent sell-off could be an opportunity if the business remains sound, 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 EMVision Medical Devices better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with EMVision Medical Devices (at least 1 which doesn't sit too well with us) , and understanding them should be part of your investment process.