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Investors Who Bought Imagion Biosystems (ASX:IBX) Shares A Year Ago Are Now Up 22%

Imagion Biosystems Limited (ASX:IBX) shareholders have seen the share price descend 19% over the month. But at least the stock is up over the last year. However, its return of 22% does fall short of the market return of, 32%.

View our latest analysis for Imagion Biosystems

Imagion Biosystems 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. 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.

Imagion Biosystems grew its revenue by 8.3% last year. That's not great considering the company is losing money. Over that time the share price gained a very modest 22%. It might be worth thinking about how long it will take the company to turn a profit.

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The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

earnings-and-revenue-growth
earnings-and-revenue-growth

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

Over the last year Imagion Biosystems shareholders have received a TSR of 22%. It's always nice to make money but this return falls short of the market return which was about 32% for the year. On the other hand, the TSR over three years was worse, at just 1.9% per year. This suggests the company's position is improving. If the business can justify the share price gain with improving fundamental data, then there could be more gains to come. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that Imagion Biosystems is showing 4 warning signs in our investment analysis , you should know about...

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.