Investors in IRIS Corporation Berhad (KLSE:IRIS) from three years ago are still down 76%, even after 20% gain this past week

This week we saw the IRIS Corporation Berhad (KLSE:IRIS) share price climb by 20%. But that is meagre solace in the face of the shocking decline over three years. The share price has sunk like a leaky ship, down 76% in that time. So it's about time shareholders saw some gains. Only time will tell if the company can sustain the turnaround.

The recent uptick of 20% could be a positive sign of things to come, so let's take a look at historical fundamentals.

Check out our latest analysis for IRIS Corporation Berhad

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

IRIS Corporation Berhad 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.

Revenue is actually up 48% over the three years, so the share price drop doesn't seem to hinge on revenue, either. It's probably worth investigating IRIS Corporation Berhad further; while we may be missing something on this analysis, there might also be an opportunity.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

Take a more thorough look at IRIS Corporation Berhad's financial health with this free report on its balance sheet.

A Different Perspective

IRIS Corporation Berhad shareholders are down 38% for the year, but the market itself is up 7.4%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 6% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. 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. Case in point: We've spotted 2 warning signs for IRIS Corporation Berhad you should be aware of.

We will like IRIS Corporation Berhad better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Malaysian 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.