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Investors Who Bought IEX Group (AMS:IEX) Shares Three Years Ago Are Now Down 25%

Many investors define successful investing as beating the market average over the long term. But in any portfolio, there are likely to be some stocks that fall short of that benchmark. Unfortunately, that's been the case for longer term IEX Group N.V. (AMS:IEX) shareholders, since the share price is down 25% in the last three years, falling well short of the market return of around 35%. Shareholders have had an even rougher run lately, with the share price down 21% in the last 90 days.

Check out our latest analysis for IEX Group

IEX Group isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

ENXTAM:IEX Income Statement, February 19th 2020
ENXTAM:IEX Income Statement, February 19th 2020

Take a more thorough look at IEX Group's financial health with this free report on its balance sheet.

A Different Perspective

The last twelve months weren't great for IEX Group shares, which cost holders 14%, while the market was up about 14%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Shareholders have lost 9.1% per year over the last three years, so the share price drop has become steeper, over the last year; a potential symptom of as yet unsolved challenges. Although Warren Buffett famously said he likes to 'buy when there is blood on the streets', he also focusses on high quality stocks with solid prospects. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Like risks, for instance. Every company has them, and we've spotted 7 warning signs for IEX Group (of which 3 make us uncomfortable!) you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on NL exchanges.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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