Recent 18% pullback isn't enough to hurt long-term Intelligent Monitoring Group (ASX:IMB) shareholders, they're still up 170% over 1 year

Intelligent Monitoring Group Limited (ASX:IMB) shareholders might be concerned after seeing the share price drop 18% in the last week. On the other hand, over the last twelve months the stock has delivered rather impressive returns. We're very pleased to report the share price shot up 170% in that time. So some might not be surprised to see the price retrace some. More important, going forward, is how the business itself is going.

Since the long term performance has been good but there's been a recent pullback of 18%, let's check if the fundamentals match the share price.

Check out our latest analysis for Intelligent Monitoring Group

Intelligent Monitoring Group isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally hope to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last year Intelligent Monitoring Group saw its revenue grow by 402%. That's well above most other pre-profit companies. And the share price has responded, gaining 170% as we previously mentioned. That sort of revenue growth is bound to attract attention, even if the company doesn't turn a profit. Given the positive sentiment around the stock we're cautious, but there's no doubt its worth watching.

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 Intelligent Monitoring Group's financial health with this free report on its balance sheet.

A Different Perspective

It's good to see that Intelligent Monitoring Group has rewarded shareholders with a total shareholder return of 170% in the last twelve months. There's no doubt those recent returns are much better than the TSR loss of 13% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. 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. For example, we've discovered 1 warning sign for Intelligent Monitoring Group that you should be aware of before investing here.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Australian 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.