Investors Who Bought Urbanimmersive (CVE:UI) Shares Three Years Ago Are Now Down 62%
Urbanimmersive Inc. (CVE:UI) shareholders should be happy to see the share price up 15% in the last quarter. But over the last three years we've seen a quite serious decline. Regrettably, the share price slid 62% in that period. So the improvement may be a real relief to some. After all, could be that the fall was overdone.
See our latest analysis for Urbanimmersive
Urbanimmersive isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
Over three years, Urbanimmersive grew revenue at 59% per year. That's well above most other pre-profit companies. The share price has moved in quite the opposite direction, down 27% over that time, a bad result. It seems likely that the market is worried about the continual losses. But a share price drop of that magnitude could well signal that the market is overly negative on the stock.
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.
You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
A Different Perspective
Investors in Urbanimmersive had a tough year, with a total loss of 29%, against a market gain of about 7.6%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 10% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. You could get a better understanding of Urbanimmersive's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
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