It is doubtless a positive to see that the Agenus Inc. (NASDAQ:AGEN) share price has gained some 47% in the last three months. But if you look at the last five years the returns have not been good. In fact, the share price is down 22%, which falls well short of the return you could get by buying an index fund.
Agenus 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 fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Over five years, Agenus grew its revenue at 44% per year. That's well above most other pre-profit companies. Shareholders are no doubt disappointed with the loss of 4.9%, each year, in that time. You could say that the market has been harsh, given the top line growth. So now is probably an apt time to look closer at the stock, if you think it has potential.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
Take a more thorough look at Agenus's financial health with this free report on its balance sheet.
A Different Perspective
Agenus provided a TSR of 4.9% over the last twelve months. But that was short of the market average. But at least that's still a gain! Over five years the TSR has been a reduction of 4.9% per year, over five years. So this might be a sign the business has turned its fortunes around. It's always interesting to track share price performance over the longer term. But to understand Agenus better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for Agenus (of which 1 is potentially serious!) you should know about.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
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 firstname.lastname@example.org. 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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