Investors Who Bought Immutep (ASX:IMM) Shares A Year Ago Are Now Up 176%
When you buy shares in a company, there is always a risk that the price drops to zero. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! For example, the Immutep Limited (ASX:IMM) share price has soared 176% return in just a single year. Also pleasing for shareholders was the 13% gain in the last three months. But this could be related to the strong market, which is up 6.0% in the last three months. And shareholders have also done well over the long term, with an increase of 42% in the last three years.
View our latest analysis for Immutep
Immutep 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.
Immutep actually shrunk its revenue over the last year, with a reduction of 51%. So we would not have expected the share price to rise 176%. It just goes to show the market doesn't always pay attention to the reported numbers. Of course, it could be that the market expected this revenue drop.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
Take a more thorough look at Immutep's financial health with this free report on its balance sheet.
A Different Perspective
It's nice to see that Immutep shareholders have received a total shareholder return of 176% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 5% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Immutep better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with Immutep (including 1 which doesn't sit too well with us) .
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.
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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