If You Had Bought IsoRay (NYSEMKT:ISR) Stock Five Years Ago, You'd Be Sitting On A 81% Loss, Today
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IsoRay, Inc. (NYSEMKT:ISR) shareholders should be happy to see the share price up 19% in the last month. But spare a thought for the long term holders, who have held the stock as it bled value over the last five years. In fact, the share price has tumbled down a mountain to land 81% lower after that period. While the recent increase might be a green shoot, we're certainly hesitant to rejoice. The million dollar question is whether the company can justify a long term recovery.
While a drop like that is definitely a body blow, money isn't as important as health and happiness.
View our latest analysis for IsoRay
Because IsoRay is loss-making, 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 fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Over five years, IsoRay grew its revenue at 7.7% per year. That's a fairly respectable growth rate. So it is unexpected to see the stock down 28% per year in the last five years. The truth is that the growth might be below expectations, and investors are probably worried about the continual losses.
The graphic below shows how revenue and earnings have changed as management guided the business forward. If you want to see cashflow, you can click on the chart.
You can see how its balance sheet has strengthened (or weakened) over time in this freeinteractive graphic.
A Different Perspective
IsoRay shareholders are down 7.0% for the year, but the market itself is up 11%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, longer term shareholders are suffering worse, given the loss of 28% doled out over the last five years. We would want clear information suggesting the company will grow, before taking the view that the share price will stabilize. Before spending more time on IsoRay it might be wise to click here to see if insiders have been buying or selling shares.
If you are like me, then you will not want to miss this freelist 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.We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.