The eMagin (NYSEMKT:EMAN) Share Price Has Soared 304%, Delighting Many Shareholders

By
Simply Wall St
Published
October 31, 2020
NYSEAM:EMAN
Source: Shutterstock

eMagin Corporation (NYSEMKT:EMAN) shareholders might be concerned after seeing the share price drop 21% in the last week. But that cannot eclipse the spectacular share price rise we've seen over the last twelve months. In fact, it is up 304% in that time. So we wouldn't blame sellers for taking some profits. Only time will tell if there is still too much optimism currently reflected in the share price.

See our latest analysis for eMagin

Given that eMagin didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over the last twelve months, eMagin's revenue grew by 25%. We respect that sort of growth, no doubt. Arguably it's more than reflected in the truly wondrous share price gain of 304% in the last year. We're always cautious when the share price is up so much, but there's certainly enough revenue growth to justify taking a closer look at eMagin.

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

earnings-and-revenue-growth
AMEX:EMAN Earnings and Revenue Growth October 31st 2020

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

A Different Perspective

It's good to see that eMagin has rewarded shareholders with a total shareholder return of 304% in the last twelve months. Notably the five-year annualised TSR loss of 8% per year compares very unfavourably with the recent share price performance. This makes us a little wary, but the business might have turned around its fortunes. 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. Take risks, for example - eMagin has 5 warning signs (and 1 which is a bit unpleasant) we think you should know about.

But note: eMagin 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 US 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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Simply Wall St is focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of data scientists and multiple equity analysts with over two decades worth of financial markets experience between them.