Stock Analysis

IQGeo Group (LON:IQG) Shareholders Booked A 80% Gain In The Last Three Years

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By buying an index fund, investors can approximate the average market return. But if you buy good businesses at attractive prices, your portfolio returns could exceed the average market return. For example, the IQGeo Group plc (LON:IQG) share price is up 80% in the last three years, clearly besting the market decline of around 11% (not including dividends).

View our latest analysis for IQGeo Group

Because IQGeo Group 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last 3 years IQGeo Group saw its revenue shrink by 44% per year. Despite the lack of revenue growth, the stock has returned 22%, compound, over three years. If the company is cutting costs profitability could be on the horizon, but the revenue decline is a prima facie concern.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

AIM:IQG Earnings and Revenue Growth November 26th 2020

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

A Different Perspective

We're pleased to report that IQGeo Group shareholders have received a total shareholder return of 72% over one year. That's better than the annualised return of 12% 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. It's always interesting to track share price performance over the longer term. But to understand IQGeo Group better, we need to consider many other factors. For instance, we've identified 1 warning sign for IQGeo Group that you should be aware of.

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 GB exchanges.

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