If You Had Bought Imperial Metals (TSE:III) Stock A Year Ago, You Could Pocket A 119% Gain Today

Imperial Metals Corporation (TSE:III) shareholders might be concerned after seeing the share price drop 13% in the last week. Despite this, the stock is a strong performer over the last year, no doubt about that. During that period, the share price soared a full 119%. So some might not be surprised to see the price retrace some. Only time will tell if there is still too much optimism currently reflected in the share price.

View our latest analysis for Imperial Metals

Because Imperial Metals made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. 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.

Imperial Metals grew its revenue by 100% last year. That's well above most other pre-profit companies. And the share price has responded, gaining 119% as we previously mentioned. It's great to see strong revenue growth, but the question is whether it can be sustained. 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).

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. You can see what analysts are predicting for Imperial Metals in this interactive graph of future profit estimates.

A Different Perspective

It's good to see that Imperial Metals has rewarded shareholders with a total shareholder return of 119% in the last twelve months. That's better than the annualised return of 0.9% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. 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. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Imperial Metals you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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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