Examining Mirati Therapeutics Inc’s (NASDAQ:MRTX) past track record of performance is a valuable exercise for investors. It enables us to understand whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess MRTX’s latest performance announced on 30 September 2017 and weigh these figures against its longer term trend and industry movements. Check out our latest analysis for Mirati Therapeutics
How Did MRTX’s Recent Performance Stack Up Against Its Past?
I use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This blend enables me to assess different companies on a similar basis, using the most relevant data points. For Mirati Therapeutics, its latest trailing-twelve-month earnings is -US$72.26M, which, against last year’s figure, has become less negative. Given that these figures are somewhat myopic, I’ve computed an annualized five-year figure for Mirati Therapeutics’s earnings, which stands at -US$45.29M. This shows that, Mirati Therapeutics has historically performed better than recently, although it seems like earnings are now heading back towards to right direction again.
We can further assess Mirati Therapeutics’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years Mirati Therapeutics has seen an annual decline in revenue of -99.75%, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Has the entire industry experienced this headwind? Inspecting growth from a sector-level, the US biotechs industry has been growing its average earnings by double-digit 22.22% in the previous twelve months, and 19.88% over the past five. This means whatever tailwind the industry is enjoying, Mirati Therapeutics has not been able to gain as much as its average peer.
What does this mean?
Mirati Therapeutics’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 difficult to predict what will occur going forward, and when. The most valuable step is to assess company-specific issues Mirati Therapeutics may be facing and whether management guidance has consistently been met in the past. You should continue to research Mirati Therapeutics to get a better picture of the stock by looking at the areas below. Just a heads up – to access some parts of the Simply Wall St research tool you might be asked to create a free account, but it takes just one click and the information they provide is definitely worth it in my opinion.
- 1. Future Outlook: What are well-informed industry analysts predicting for MRTX’s future growth? Take a look at this free research report of analyst consensus for MRTX’s outlook.
- 2. Financial Health: Is MRTX’s operations financially sustainable? Balance sheets can be hard to analyze, which is why Simply Wall St does it for you. Check out important financial health checks here.
- 3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore a free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 30 September 2017. 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.