It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes to zero. But in contrast you can make much more than 100% if the company does well. To wit, the Intellicheck, Inc. (NYSEMKT:IDN) share price has flown 102% in the last three years. Most would be happy with that. It's also good to see the share price up 41% over the last quarter.
Intellicheck isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In the last 3 years Intellicheck saw its revenue shrink by 19% per year. So the share price gain of 26% per year is quite surprising. It's a good reminder that expectations about the future, not the past history, always impact share prices.
The graphic below shows how revenue and earnings have changed as management guided the business forward. If you want to see cashflow, you can click on the chart.
If you are thinking of buying or selling Intellicheck stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
We're pleased to report that Intellicheck shareholders have received a total shareholder return of 70% over one year. That certainly beats the loss of about 9.8% per year over the last half decade. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. Before spending more time on Intellicheck it might be wise to click here to see if insiders have been buying or selling shares.
But note: Intellicheck may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.