EMVision Medical Devices share price 12% higher than a year ago

Passive investing in index funds can generate returns that roughly match the overall market. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). To wit, the EMVision Medical Devices Ltd share price is 12% higher than it was a year ago, much better than the market decline of around 0.8% (not including dividends) in the same period. That’s a solid performance by our standards! Unfortunately the longer term returns are not so good, with the stock falling 12% in the last three years.

The past week has proven to be lucrative for EMVision Medical Devices investors, so let’s see if fundamentals drove the company’s one-year performance.

EMVision Medical Devices wasn’t profitable in the last twelve months, it is unlikely we’ll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. 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 EMVision Medical Devices saw its revenue grow by 68%. That’s stonking growth even when compared to other loss-making stocks. While the share price gain of 12% over twelve months is pretty tasty, you might argue it doesn’t fully reflect the strong revenue growth. If that’s the case, now might be the time to take a close look at EMVision Medical Devices. Since we evolved from monkeys, we think in linear terms by nature. So if growth goes exponential, opportunity may exist for the enlightened.

The image below shows how earnings and revenue have tracked over time.

A different perspective
We’re pleased to report that EMVision Medical Devices rewarded shareholders with a total shareholder return of 12% over the last year. What is absolutely clear is that is far preferable to the dismal 4% average annual loss suffered over the last three years. We’re generally cautious about putting too much weigh on shorter term data, but the recent improvement is definitely a positive. It’s always interesting to track share price performance over the longer term. But to understand EMVision Medical Devices better, we need to consider many other factors. Even so, be aware that EMVision Medical Devices is showing 3 warning signs in our investment analysis , and 1 of those is significant. Simply Wall St