International Petroleum (TSE:IPCO) Share Prices Have Dropped 28% In The Last Three Years

By
Simply Wall St
Published
March 04, 2021
TSX:IPCO

It is doubtless a positive to see that the International Petroleum Corporation (TSE:IPCO) share price has gained some 53% in the last three months. But that cannot eclipse the less-than-impressive returns over the last three years. Truth be told the share price declined 28% in three years and that return, Dear Reader, falls short of what you could have got from passive investing with an index fund.

See our latest analysis for International Petroleum

International Petroleum 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. 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, International Petroleum grew revenue at 11% per year. That's a fairly respectable growth rate. Shareholders have endured a share price decline of 8% per year. This implies the market had higher expectations of International Petroleum. With revenue growing at a solid clip, now might be the time to focus on the possibility that it will have a brighter future.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

earnings-and-revenue-growth
TSX:IPCO Earnings and Revenue Growth March 4th 2021

If you are thinking of buying or selling International Petroleum stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Over the last year, International Petroleum shareholders took a loss of 4.1%. In contrast the market gained about 16%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. However, the loss over the last year isn't as bad as the 8% per annum loss investors have suffered over the last three years. We'd need clear signs of growth in the underlying business before we could muster much enthusiasm for this one. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 3 warning signs for International Petroleum that you should be aware of before investing here.

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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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.
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