Assessing Cellectis SA.’s (NASDAQ:CLLS) past track record of performance is a useful exercise for investors. It allows us to understand whether the company has met or exceed expectations, which is a great indicator for future performance. Below, I assess CLLS’s latest performance announced on 31 March 2018 and evaluate these figures to its historical trend and industry movements. View our latest analysis for Cellectis
Was CLLS’s weak performance lately a part of a long-term decline?
I look at the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This method allows me to assess different companies on a more comparable basis, using new information. For Cellectis, its most recent earnings (trailing twelve month) is -US$105.04M, which, relative to the prior year’s figure, has become more negative. Given that these figures are fairly short-term thinking, I have estimated an annualized five-year figure for CLLS’s earnings, which stands at -US$38.11M. This doesn’t seem to paint a better picture, since 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 last five years Cellectis’s top-line has increased by 17.31% on average, implying that the company is in a high-growth phase with expenses shooting ahead of revenues, leading to annual losses. Viewing growth from a sector-level, the US biotechs industry has been growing its average earnings by double-digit 21.75% in the previous twelve months, and 17.77% over the past half a decade. This shows that any uplift the industry is profiting from, Cellectis has not been able to reap as much as its average peer.
What does this mean?
Cellectis’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. With companies that are currently loss-making, it is always hard to forecast what will occur going forward, and when. The most useful step is to examine company-specific issues Cellectis may be facing and whether management guidance has dependably been met in the past. You should 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 CLLS’s future growth? Take a look at our free research report of analyst consensus for CLLS’s outlook.
- Financial Health: Is CLLS’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 March 2018. 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.