For investors, increase in profitability and industry-beating performance can be essential considerations in an investment. Below, I will examine Celldex Therapeutics Inc’s (NASDAQ:CLDX) track record on a high level, to give you some insight into how the company has been performing against its long term trend and its industry peers. See our latest analysis for Celldex Therapeutics
Commentary On CLDX’s Past Performance
I use the ‘latest twelve-month’ data, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This blend enables me to examine different stocks on a similar basis, using new information. For Celldex Therapeutics, the most recent twelve-month earnings -$121.5M, which, relative to last year’s figure, has become less negative. Given that these values may be somewhat short-term thinking, I have created an annualized five-year value for CLDX’s net income, which stands at -$85.2M. This means that, Celldex Therapeutics has historically performed better than recently, though it seems like earnings are now heading back towards a more favorable position once more.
Additionally, we can analyze Celldex Therapeutics’s loss by researching what has been happening in the industry as well as within the company. Initially, I want to quickly look into the line items. Revenue growth over past couple of years has been negative at -7.54%. The key to profitability here is to make sure the company’s cost growth is well-controlled. Eyeballing growth from a sector-level, the US biotechnology industry has been growing its average earnings by double-digit 11.07% over the previous twelve months, and 20.18% over the past five. This shows that any uplift the industry is deriving benefit from, Celldex Therapeutics has not been able to realize the gains unlike its average peer.
What does this mean?
While past data is useful, it doesn’t tell the whole story. With companies that are currently loss-making, it is always difficult to predict what will occur going forward, and when. The most useful step is to examine company-specific issues Celldex Therapeutics may be facing and whether management guidance has steadily been met in the past. You should continue to research Celldex Therapeutics to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for CLDX’s future growth? Take a look at our free research report of analyst consensus for CLDX’s outlook.
2. Financial Health: Is CLDX’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.