Yahoo Finance Strong week for East Imperial (LON:EISB) shareholders doesn't alleviate pain of one-year loss
While it may not be enough for some shareholders, we think it is good to see the East Imperial PLC (LON:EISB) share price up 27% in a single quarter. But that is meagre solace when you consider how the price has plummeted over the last year. During that time the share price has plummeted like a stone, down 79%. So it's not that amazing to see a bit of a bounce. The bigger issue is whether the company can sustain the momentum in the long term.
While the stock has risen 21% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.
View our latest analysis for East Imperial
Given that East Imperial 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last year East Imperial saw its revenue grow by 36%. That's definitely a respectable growth rate. Unfortunately, the market wanted something better, given it sent the share price 79% lower during the year. One fear might be that the company might be losing too much money and will need to raise more. We'd posit that the future looks challenging, given the disconnect between revenue growth and the share price.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
Take a more thorough look at East Imperial's financial health with this free report on its balance sheet.
A Different Perspective
We doubt East Imperial shareholders are happy with the loss of 79% over twelve months. That falls short of the market, which lost 27%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. It's great to see a nice little 27% rebound in the last three months. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we've identified 5 warning signs for East Imperial (2 are a bit concerning) that you should be aware of.
We will like East Imperial better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on GB exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an 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 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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