ImExHS (ASX:IME) Shareholders Booked A 30% Gain In The Last Year
We believe investing is smart because history shows that stock markets go higher in the long term. But not every stock you buy will perform as well as the overall market. Over the last year the ImExHS Limited (ASX:IME) share price is up 30%, but that's less than the broader market return. ImExHS hasn't been listed for long, so it's still not clear if it is a long term winner.
View our latest analysis for ImExHS
Given that ImExHS 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. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In the last year ImExHS saw its revenue grow by 42%. That's a fairly respectable growth rate. The share price gain of 30% seems pretty muted, considering the growth. Arguably, the market (previously) expected stronger growth from the company. However, if you can reasonably expect profits in the next few years, this stock might belong on your watchlist.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. So we recommend checking out this free report showing consensus forecasts
A Different Perspective
ImExHS shareholders have gained 30% for the year. While it's always nice to make a profit on the stock market, we do note that the TSR was no better than the broader market return of about 42%. It's always interesting to track share price performance over the longer term. But to understand ImExHS better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with ImExHS , and understanding them should be part of your investment process.
ImExHS 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 AU exchanges.
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. 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.
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