While shareholders of Intermap Technologies (TSE:IMP) are in the black over 3 years, those who bought a week ago aren't so fortunate
Intermap Technologies Corporation (TSE:IMP) shareholders might be concerned after seeing the share price drop 14% in the last week. But over the last three years the stock has shone bright like a diamond. In fact, the share price has taken off in that time, up 502%. So the recent fall doesn't do much to dampen our respect for the business. The thing to consider is whether there is still too much elation around the company's prospects. We love happy stories like this one. The company should be really proud of that performance!
Although Intermap Technologies has shed CA$29m from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.
Given that Intermap Technologies only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.
Intermap Technologies' revenue trended up 42% each year over three years. That's well above most pre-profit companies. In light of this attractive revenue growth, it seems somewhat appropriate that the share price has been rocketing, boasting a gain of 82% per year, over the same period. It's always tempting to take profits after a share price gain like that, but high-growth companies like Intermap Technologies can sometimes sustain strong growth for many years. In fact, it might be time to put it on your watchlist, if you're not already familiar with the stock.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
We know that Intermap Technologies has improved its bottom line over the last three years, but what does the future have in store? This free interactive report on Intermap Technologies' balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
It's nice to see that Intermap Technologies shareholders have received a total shareholder return of 231% over the last year. That's better than the annualised return of 24% 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. 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 instance, we've identified 1 warning sign for Intermap Technologies that you should be aware of.
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 Canadian exchanges.
Valuation is complex, but we're here to simplify it.
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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.