We think intelligent long term investing is the way to go. But no-one is immune from buying too high. For example the IsoRay, Inc. (NYSEMKT:ISR) share price dropped 66% over five years. We certainly feel for shareholders who bought near the top. Unfortunately the share price momentum is still quite negative, with prices down 30% in thirty days. We do note, however, that the broader market is down 17% in that period, and this may have weighed on the share price.
View our latest analysis for IsoRay
IsoRay isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last half decade, IsoRay saw its revenue increase by 14% per year. That's a pretty good rate for a long time period. The share price return isn't so respectable with an annual loss of 19% over the period. That suggests the market is disappointed with the current growth rate. That could lead to an opportunity if the company is going to become profitable sooner rather than later.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
If you are thinking of buying or selling IsoRay stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
We're pleased to report that IsoRay shareholders have received a total shareholder return of 34% over one year. There's no doubt those recent returns are much better than the TSR loss of 19% per year over five years. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. 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. Case in point: We've spotted 4 warning signs for IsoRay you should be aware of, and 1 of them is significant.
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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.
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