A Look At Iconovo's (STO:ICO) Share Price Returns

Passive investing in an index fund is a good way to ensure your own returns roughly match the overall market. But if you buy individual stocks, you can do both better or worse than that. Unfortunately the Iconovo AB (publ) (STO:ICO) share price slid 24% over twelve months. That's well below the market return of 18%. Iconovo hasn't been listed for long, so although we're wary of recent listings that perform poorly, it may still prove itself with time. On the other hand the share price has bounced 9.9% over the last week.

View our latest analysis for Iconovo

Iconovo wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Iconovo's revenue didn't grow at all in the last year. In fact, it fell 32%. That's not what investors generally want to see. The stock price has languished lately, falling 24% in a year. That seems pretty reasonable given the lack of both profits and revenue growth. We think most holders must believe revenue growth will improve, or else costs will decline.

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

This free interactive report on Iconovo's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

While Iconovo shareholders are down 24% for the year, the market itself is up 18%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. It's great to see a nice little 3.4% rebound in the last three months. This could just be a bounce because the selling was too aggressive, but fingers crossed it's the start of a new trend. 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. For instance, we've identified 2 warning signs for Iconovo that you should be aware of.

But note: Iconovo may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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