Strong week for Ignite International Brands (CSE:BILZ) shareholders doesn't alleviate pain of three-year loss

Ignite International Brands, Ltd. (CSE:BILZ) shareholders should be happy to see the share price up 29% in the last month. Meanwhile over the last three years the stock has dropped hard. Indeed, the share price is down a tragic 54% in the last three years. So it's good to see it climbing back up. Perhaps the company has turned over a new leaf.

While the last three years has been tough for Ignite International Brands shareholders, this past week has shown signs of promise. So let's look at the longer term fundamentals and see if they've been the driver of the negative returns.

Check out our latest analysis for Ignite International Brands

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Ignite International Brands became profitable within the last five years. We would usually expect to see the share price rise as a result. So it's worth looking at other metrics to try to understand the share price move.

We note that, in three years, revenue has actually grown at a 94% annual rate, so that doesn't seem to be a reason to sell shares. It's probably worth investigating Ignite International Brands further; while we may be missing something on this analysis, there might also be an opportunity.

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

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

A Different Perspective

Ignite International Brands shareholders are down 45% for the year, falling short of the market return. The market shed around 3.0%, no doubt weighing on the stock price. Shareholders have lost 16% per year over the last three years, so the share price drop has become steeper, over the last year; a potential symptom of as yet unsolved challenges. Although Baron Rothschild famously said to "buy when there's blood in the streets, even if the blood is your own", he also focusses on high quality stocks with solid prospects. It's always interesting to track share price performance over the longer term. But to understand Ignite International Brands better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Ignite International Brands .

Of course Ignite International Brands may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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. 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.