Those who invested in Income Asset Management Group (ASX: INY) three years ago are up 46%

While Limited Income Asset Management Group (ASX: INY) Shareholders are probably generally happy, the stock hasn’t gone particularly well recently, with the stock price falling 19% in the last quarter. On the other hand, the share price is higher than three years ago. You would probably have done better to buy an index fund, because the gain of 46% in three years is not surprising.

So let’s take a look and see if the long-term performance of the business has been in line with the progress of the underlying business.

Check out our latest analysis for Income Asset Management Group

Income Asset Management Group is currently unprofitable, so most analysts would look to revenue growth to get a sense of how fast the underlying business is growing. When a business is not making a profit, we generally expect good revenue growth. As you can imagine, rapid revenue growth, when sustained, often leads to rapid profit growth.

Over the past three years, Income Asset Management Group has grown its revenues by 60% per year. It’s much better than most loss-making businesses. While the compounded gain of 13% per year over three years is good enough, you could argue that it does not fully reflect the strong growth in income. If so, perhaps now is the time to take a close look at the Income Asset Management group. If the business strives for profitability, it could be very interesting.

The image below shows how revenue and income have tracked over time (if you click on the image you can see more details).

ASX: INY Profits and Revenue Growth December 17, 2021

You can see how his track record has strengthened (or weakened) over time in this free interactive graphics.

A different perspective

Over the past year, shareholders of Income Asset Management Group have suffered a loss of 23%. In contrast, the market gained around 15%. 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, registering 13% a year, much better than the most recent returns. Sometimes when a good quality long term winner has a low period it turns out to be an opportunity, but you really have to be sure the quality is there. I find it very interesting to look at the stock price over the long term as an indicator of company performance. But to really understand better, we have to take other information into account as well. Take risks, for example – Income Asset Management Group has 6 warning signs (and 2 that are significant) we think you should be aware of.

Sure, you might find a fantastic investment looking elsewhere. So take a look at this free list of companies that we believe will 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 stock 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 material. Simply Wall St has no position in any of the stocks mentioned.

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