U.S. markets close in 3 hours 59 minutes
  • S&P 500

    3,836.39
    +16.67 (+0.44%)
     
  • Dow 30

    31,411.03
    +140.94 (+0.45%)
     
  • Nasdaq

    13,014.95
    +17.20 (+0.13%)
     
  • Russell 2000

    2,198.03
    -9.77 (-0.44%)
     
  • Crude Oil

    64.38
    +3.10 (+5.06%)
     
  • Gold

    1,713.80
    -2.00 (-0.12%)
     
  • Silver

    26.22
    -0.17 (-0.65%)
     
  • EUR/USD

    1.2048
    -0.0019 (-0.16%)
     
  • 10-Yr Bond

    1.4770
    +0.0070 (+0.48%)
     
  • GBP/USD

    1.3997
    +0.0044 (+0.32%)
     
  • USD/JPY

    107.5830
    +0.5810 (+0.54%)
     
  • BTC-USD

    49,724.41
    -1,044.79 (-2.06%)
     
  • CMC Crypto 200

    997.56
    +10.35 (+1.05%)
     
  • FTSE 100

    6,650.88
    -24.59 (-0.37%)
     
  • Nikkei 225

    28,930.11
    -628.99 (-2.13%)
     

Should BioMarin Pharmaceutical (NASDAQ:BMRN) Be Disappointed With Their 22% Profit?

  • Oops!
    Something went wrong.
    Please try again later.
Simply Wall St
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.

The main point of investing for the long term is to make money. Better yet, you'd like to see the share price move up more than the market average. But BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) has fallen short of that second goal, with a share price rise of 22% over five years, which is below the market return. The last year has been disappointing, with the stock price down 1.6% in that time.

See our latest analysis for BioMarin Pharmaceutical

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During the last half decade, BioMarin Pharmaceutical became profitable. That would generally be considered a positive, so we'd expect the share price to be up.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

earnings-per-share-growth
earnings-per-share-growth

We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. It might be well worthwhile taking a look at our free report on BioMarin Pharmaceutical's earnings, revenue and cash flow.

A Different Perspective

While the broader market gained around 27% in the last year, BioMarin Pharmaceutical shareholders lost 1.6%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 4%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand BioMarin Pharmaceutical better, we need to consider many other factors. Even so, be aware that BioMarin Pharmaceutical is showing 1 warning sign in our investment analysis , you should know about...

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

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

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.