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Should Deciphera Pharmaceuticals (NASDAQ:DCPH) Be Disappointed With Their 14% Profit?

Simply Wall St

The simplest way to invest in stocks is to buy exchange traded funds. But you can significantly boost your returns by picking above-average stocks. To wit, the Deciphera Pharmaceuticals, Inc. (NASDAQ:DCPH) share price is 14% higher than it was a year ago, much better than the market return of around -0.5% (not including dividends) in the same period. So that should have shareholders smiling. Deciphera Pharmaceuticals hasn't been listed for long, so it's still not clear if it is a long term winner.

See our latest analysis for Deciphera Pharmaceuticals

Given that Deciphera Pharmaceuticals didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.


The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

NasdaqGS:DCPH Income Statement, October 4th 2019

It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. If you are thinking of buying or selling Deciphera Pharmaceuticals stock, you should check out this free report showing analyst profit forecasts.

A Different Perspective

It's nice to see that Deciphera Pharmaceuticals shareholders have gained 14% over the last year. A substantial portion of that gain has come in the last three months, with the stock up 55% in that time. This suggests the company is continuing to win over new investors. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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. Thank you for reading.