Understanding Cellectis SA.’s (ENXTPA:ALCLS) performance as a company requires examining more than earnings from one point in time. Today I will take you through a basic sense check to gain perspective on how Cellectis is doing by evaluating its latest earnings with its longer term trend as well as its industry peers’ performance over the same period. See our latest analysis for Cellectis
Was ALCLS’s recent earnings decline indicative of a tough track record?
I like to use the ‘latest twelve-month’ data, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This enables me to analyze various companies on a more comparable basis, using new information. For Cellectis, its latest trailing-twelve-month earnings is -US$99.37M, which, relative to last year’s figure, has become more negative. Since these figures are fairly short-term thinking, I’ve determined an annualized five-year figure for ALCLS’s net income, which stands at -US$35.90M. This doesn’t look much better, as earnings seem to have steadily been getting more and more negative over time.
We can further analyze Cellectis’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past half a decade Cellectis’s top-line has increased by 19.89% on average, signalling that the company is in a high-growth period with expenses racing ahead revenues, leading to annual losses. Eyeballing growth from a sector-level, the FR biotechs industry has been enduring some headwinds in the previous year, leading to an average earnings drop of -7.50%. This is a momentous change, given that the industry has been delivering a positive rate of 8.79%, on average, over the last five years. This means whatever near-term headwind the industry is experiencing, it’s hitting Cellectis harder than its peers.
What does this mean?
Though Cellectis’s past data is helpful, it is only one aspect of my investment thesis. Companies that incur net loss is always difficult to forecast what will occur going forward, and when. The most insightful step is to assess company-specific issues Cellectis may be facing and whether management guidance has steadily been met in the past. I recommend you continue to research Cellectis to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for ALCLS’s future growth? Take a look at our free research report of analyst consensus for ALCLS’s outlook.
- Financial Health: Is ALCLS’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.
- 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 trailing twelve months from 31 December 2017. 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.