Shareholders in AudioEye (NASDAQ:AEYE) are in the red if they invested five years ago
This month, we saw the AudioEye, Inc. (NASDAQ:AEYE) up an impressive 38%. But that doesn't change the fact that the returns over the last five years have been less than pleasing. In fact, the share price is down 10%, which falls well short of the return you could get by buying an index fund.
With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.
See our latest analysis for AudioEye
AudioEye 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. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Over five years, AudioEye grew its revenue at 41% per year. That's better than most loss-making companies. Shareholders are no doubt disappointed with the loss of 2%, each year, in that time. So you might argue the AudioEye should get more credit for its rather impressive revenue growth over the period. If that's the case, now might be the smart time to take a close look at it.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
Take a more thorough look at AudioEye's financial health with this free report on its balance sheet.
A Different Perspective
We're pleased to report that AudioEye shareholders have received a total shareholder return of 2.2% over one year. That certainly beats the loss of about 2% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand AudioEye better, we need to consider many other factors. Take risks, for example - AudioEye has 3 warning signs (and 1 which is a bit unpleasant) we think you should know about.
We will like AudioEye better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, 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.
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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.
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