WEBULL

Even after rising 12% this past week, Invinity Energy Systems (LON:IES) shareholders are still down 89% over the past five years

Simply Wall St · 2d ago

Invinity Energy Systems plc (LON:IES) shareholders should be happy to see the share price up 13% in the last month. But will that repair the damage for the weary investors who have owned this stock as it declined over half a decade? Probably not. Five years have seen the share price descend precipitously, down a full 89%. So we don't gain too much confidence from the recent recovery. The fundamental business performance will ultimately determine if the turnaround can be sustained. We really feel for shareholders in this scenario. It's a good reminder of the importance of diversification, and it's worth keeping in mind there's more to life than money, anyway.

Although the past week has been more reassuring for shareholders, they're still in the red over the last five years, so let's see if the underlying business has been responsible for the decline.

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Invinity Energy Systems 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 hope to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last half decade, Invinity Energy Systems saw its revenue increase by 35% per year. That's better than most loss-making companies. So it's not at all clear to us why the share price sunk 14% throughout that time. You'd have to assume the market is worried that profits won't come soon enough. We'd recommend carefully checking for indications of future growth - and balance sheet threats - before considering a purchase.

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

earnings-and-revenue-growth
AIM:IES Earnings and Revenue Growth January 7th 2026

If you are thinking of buying or selling Invinity Energy Systems stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Invinity Energy Systems shareholders gained a total return of 9.2% during the year. But that was short of the market average. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 14% endured over half a decade. So this might be a sign the business has turned its fortunes around. It's always interesting to track share price performance over the longer term. But to understand Invinity Energy Systems better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Invinity Energy Systems you should be aware of.

Of course Invinity Energy Systems may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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