Stock Analysis

The iCAD (NASDAQ:ICAD) Share Price Is Up 254% And Shareholders Are Boasting About It

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NasdaqCM:ICAD
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It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes to zero. But if you buy shares in a really great company, you can more than double your money. For instance the iCAD, Inc. (NASDAQ:ICAD) share price is 254% higher than it was three years ago. That sort of return is as solid as granite. On top of that, the share price is up 33% in about a quarter.

Check out our latest analysis for iCAD

Because iCAD 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. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

iCAD's revenue trended up 3.7% each year over three years. That's not a very high growth rate considering it doesn't make profits. In comparison, the share price rise of 52% per year over the last three years is pretty impressive. We'd need to take a closer look at the revenue and profit trends to see whether the improvements might justify that sort of increase. It may be that the market is pretty optimistic about iCAD if you look to the bottom line.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

earnings-and-revenue-growth
NasdaqCM:ICAD Earnings and Revenue Growth January 11th 2021

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. So we recommend checking out this free report showing consensus forecasts

A Different Perspective

It's good to see that iCAD has rewarded shareholders with a total shareholder return of 43% in the last twelve months. That's better than the annualised return of 27% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand iCAD better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for iCAD you should be aware of.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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

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