While not a mind-blowing move, it is good to see that the CRISPR Therapeutics AG (NASDAQ:CRSP) share price has gained 20% in the last three months. But in truth the last year hasn't been good for the share price. The cold reality is that the stock has dropped 19% in one year, under-performing the market.
CRISPR Therapeutics isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
CRISPR Therapeutics's revenue didn't grow at all in the last year. In fact, it fell 92%. That looks like a train-wreck result to investors far and wide. Meanwhile, the share price dropped by 19%. It's always work digging deeper, but we'd probably need to see a strong balance sheet and bottom line improvements to get interested in this one.
The chart below shows how revenue and earnings have changed with time, (if you click on the chart you can see the actual values).
Balance sheet strength is crucual. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.
A Different Perspective
Given that the market gained 12% in the last year, CRISPR Therapeutics shareholders might be miffed that they lost 19%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. Putting aside the last twelve months, it's good to see the share price has rebounded by 20%, in the last ninety days. This could just be a bounce because the selling was too aggressive, but fingers crossed it's the start of a new trend. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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