Income Asset Management Group (ASX:IAM) investors will be delighted with their remarkable 36% return over the past three years

While Income Asset Management Group Limited (ASX:IAM) shareholders are likely generally happy, the stock hasn’t done particularly well recently, with the stock price falling 17% in the last quarter. In contrast, the stock has been on the rise over the past three years. However, many shareholders are unlikely to be thrilled with the 36% gain in the share price during this period, given the rising market.

So let’s assess the underlying fundamentals over the past 3 years and see if they have moved in step with shareholder returns.

Check out our latest analysis for Income Asset Management Group

Income Asset Management Group has not been profitable for the last twelve months, we are unlikely to see a strong correlation between its share price and its earnings per share (EPS). Income is arguably our second best option. When a business is not making a profit, you generally expect to see good revenue growth. Some companies are ready to postpone profitability to increase revenue faster, but in this case, good revenue growth is expected.

Over the past three years, Income Asset Management Group has grown its turnover by 71% per year. That’s way above most nonprofits. While the compound gain of 11% per year over three years is quite good, you could argue that it doesn’t fully reflect the strong revenue growth. If so, now might be the time to take a close look at the Income Asset Management group. A window of opportunity may reveal itself over time, if the business can move towards profitability.

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

earnings-and-revenue-growth

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive chart.

A different perspective

Income Asset Management group shareholders are down 28% for the year, but the broader market is up 12%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Investors are up over three years, booking 11% a year, much better than more recent returns. The recent selloff could be an opportunity if the company remains healthy, so it may be worth checking the fundamentals for signs of a long-term growth trend. I find it very interesting to look at stock price over the long term as a proxy for company performance. But to really get insight, we also need to consider other information. Even so, know that Income Asset Management Group presents 6 warning signs in our investment analysis and 2 of them are a little concerning…

If you’d rather check out another company – one with potentially superior finances – then don’t miss this free list of companies that have proven that they can increase their profits.

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

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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