Some Curis, Inc. (NASDAQ:CRIS) shareholders are probably rather concerned to see the share price fall 37% over the last three months. But that doesn't detract from the splendid returns of the last year. Like an eagle, the share price soared 103% in that time. So it is important to view the recent reduction in price through that lense. Investors should be wondering whether the business itself has the fundamental value required to continue to drive gains.
Curis wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In the last year Curis saw its revenue shrink by 13%. So we would not have expected the share price to rise 103%. It just goes to show the market doesn't always pay attention to the reported numbers. It's quite likely the revenue fall was already priced in, anyway.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
This free interactive report on Curis's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
It's good to see that Curis has rewarded shareholders with a total shareholder return of 103% in the last twelve months. There's no doubt those recent returns are much better than the TSR loss of 25% per year over five years. This makes us a little wary, but the business might have turned around its fortunes. You could get a better understanding of Curis's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
But note: Curis may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned.
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