This month, we saw the Integrated Media Technology Limited (NASDAQ:IMTE) up an impressive 31%. But over the last three years we've seen a quite serious decline. Regrettably, the share price slid 50% in that period. So it is really good to see an improvement. While many would remain nervous, there could be further gains if the business can put its best foot forward.
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.
Given that Integrated Media Technology 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. 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.
Over the last three years, Integrated Media Technology's revenue dropped 50% per year. That means its revenue trend is very weak compared to other loss making companies. With no profits and falling revenue it is no surprise that investors have been dumping the stock, pushing the price down by 14% per year over that time. Bagholders or 'baggies' are people who buy more of a stock as the price collapses. They are then left 'holding the bag' if the shares turn out to be worthless. After losing money on a declining business with falling stock price, we always consider whether eager bagholders are still offering us a reasonable exit price.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).NasdaqCM:IMTE Earnings and Revenue Growth September 11th 2021
This free interactive report on Integrated Media Technology's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
Pleasingly, Integrated Media Technology's total shareholder return last year was 48%. That certainly beats the loss of about 14% per year over three years. It could well be that the business has turned around -- or else regained the confidence of investors. It's always interesting to track share price performance over the longer term. But to understand Integrated Media Technology better, we need to consider many other factors. Case in point: We've spotted 5 warning signs for Integrated Media Technology you should be aware of, and 2 of them are potentially serious.
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 US exchanges.
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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