Even though iCatch Technology (TWSE:6695) has lost NT$784m market cap in last 7 days, shareholders are still up 316% over 5 years

iCatch Technology, Inc. (TWSE:6695) shareholders have seen the share price descend 14% over the month. But that doesn't change the fact that the returns over the last half decade have been spectacular. In that time, the share price has soared some 316% higher! So we don't think the recent decline in the share price means its story is a sad one. The most important thing for savvy investors to consider is whether the underlying business can justify the share price gain.

In light of the stock dropping 12% in the past week, we want to investigate the longer term story, and see if fundamentals have been the driver of the company's positive five-year return.

See our latest analysis for iCatch Technology

iCatch Technology 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. Shareholders of unprofitable companies usually desire strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.

For the last half decade, iCatch Technology can boast revenue growth at a rate of 8.1% per year. That's a fairly respectable growth rate. Arguably it's more than reflected in the very strong share price gain of 33% a year over a half a decade. We usually like strong growth stocks but it does seem the market already appreciates this one quite well!

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

Take a more thorough look at iCatch Technology's financial health with this free report on its balance sheet.

A Different Perspective

It's good to see that iCatch Technology has rewarded shareholders with a total shareholder return of 51% in the last twelve months. That's better than the annualised return of 33% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand iCatch Technology better, we need to consider many other factors. For example, we've discovered 1 warning sign for iCatch Technology that you should be aware of before investing here.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation).

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com