Ion Beam Applications (EBR: IBAB) Profits Decreased Over Five Years, Contributing To 62% Shareholder Loss


Ion Beam Applications SA (EBR: IBAB) Shareholders should be happy to see the stock price rise 10% last week. But don’t envy the holders – looking back 5 years, the returns have been really bad. Meanwhile, the share price shocked holders, who found themselves down 63% after a long time. Some might say that the recent rebound is to be expected after such a bad decline. However, in the best case (far from done), this performance improvement could be maintained.

On a more encouraging note, the company added $ 42million to its market cap over the past 7 days, so let’s see if we can determine what caused the five-year loss for shareholders.

Check out our latest analysis for ion beam applications

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are overly responsive dynamic systems and investors are not always rational. A flawed but reasonable way to gauge how sentiment is changing around a company is to compare earnings per share (EPS) with the stock price.

Ion Beam Applications has become profitable over the past five years. This would generally be viewed as a positive, so we’re surprised to see that the stock price is going down. Other metrics could give us a better idea of ​​how its value has changed over time.

The modest 1.3% dividend yield is unlikely to guide the view of the stock market. Unlike the share price, revenue actually increased 0.6% per year over the five-year period. It therefore seems that one needs to take a closer look at the fundamentals to understand why the stock price is languishing. After all, there may be an opportunity.

The graph below illustrates the evolution of earnings and income over time (reveal the exact values ​​by clicking on the image).

ENXTBR: IBAB Profit and Revenue Growth December 24, 2021

It is of course great to see how Ion Beam Applications has increased its profits over the years, but the future is more important to shareholders. This free Ion Beam Applications’ interactive Balance Sheet Strength report is a great place to start if you want to dig deeper into the inventory.

A different perspective

It is nice to see that Ion Beam Applications shareholders have received a total shareholder return of 29% over the past year. And that includes the dividend. This certainly beats the loss of around 10% per year over the past five years. We tend to place more emphasis on long-term performance than short-term performance, but the recent improvement could point to a (positive) inflection point within the company. It is always interesting to follow the evolution of stock prices over the long term. But to better understand the applications of ion beams, there are many other factors that we need to consider. Like risks, for example. Every business has them, and we’ve spotted 2 warning signs for ion beam applications (1 of which cannot be ignored!) that you should know.

If you like to buy stocks alongside management then you might love this free list of companies. (Hint: insiders bought them).

Please note that the market returns quoted in this article reflect the market-weighted average returns of stocks currently traded on the BE exchanges.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.

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