i3 Verticals (NASDAQ:IIIV) shareholders have endured a 15% loss from investing in the stock a year ago
It's easy to feel disappointed if you buy a stock that goes down. But often it is not a reflection of the fundamental business performance. The i3 Verticals, Inc. (NASDAQ:IIIV) share price is down 15% in the last year. However, that's better than the market's overall decline of 21%. Longer term investors have fared much better, since the share price is up 3.6% in three years. The share price has dropped 21% in three months.
Since shareholders are down over the longer term, lets look at the underlying fundamentals over the that time and see if they've been consistent with returns.
See our latest analysis for i3 Verticals
Because i3 Verticals made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last twelve months, i3 Verticals increased its revenue by 54%. That's a strong result which is better than most other loss making companies. Given that the broader market is down the 15% drop last year isn't too bad. Given the strong revenue growth, it may simply be that the stock is suffering from market conditions. For us, this sort of situation smells of opportunity - the share price is down but the revenue is up. Either way, we'd say the mismatch between the revenue growth and the share price justifies a closer look.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. This free report showing analyst forecasts should help you form a view on i3 Verticals
A Different Perspective
i3 Verticals shareholders may not have made money over the last year, but their total loss of 15% isn't as bad as the market loss of around 15%. Shareholders who have held for three years might be relatively sanguine about the recent weakness, given they have made 1.2% per year for three years. It's possible that the recent share price decline has more to do with the negative broader market returns than any company specific development. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought. You can find out about the insider purchases of i3 Verticals by clicking this link.
i3 Verticals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here