Are Earnings Prospects Improving For Loss-Making Curis Inc’s (NASDAQ:CRIS)?
Improvement in profitability and outperformance against the industry can be important characteristics in a stock for some investors. Below, I will assess Curis Inc’s (NASDAQ:CRIS) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. See our latest analysis for Curis
Could CRIS beat the long-term trend and outperform its industry?
I look at the ‘latest twelve-month’ data, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This blend enables me to assess various companies on a similar basis, using the most relevant data points. For Curis, its latest earnings (trailing twelve month) is -US$53.32M, which, against the prior year’s figure, has become less negative. Since these figures are relatively myopic, I have created an annualized five-year value for Curis’s net income, which stands at -US$31.74M. This suggests that, Curis has historically performed better than recently, while it seems like earnings are now heading back towards a more favorable position once more.
We can further assess Curis’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years Curis has seen an annual decline in revenue of -11.92%, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Has the entire industry experienced this headwind? Eyeballing growth from a sector-level, the US biotechs industry has been growing its average earnings by double-digit 22.93% over the previous twelve months, and 20.37% over the previous five years. This means whatever tailwind the industry is enjoying, Curis has not been able to leverage it as much as its average peer.
What does this mean?
Though Curis’s past data is helpful, it is only one aspect of my investment thesis. Companies that incur net loss is always hard to envisage what will happen in the future and when. The most insightful step is to assess company-specific issues Curis may be facing and whether management guidance has steadily been met in the past. I recommend you continue to research Curis to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for CRIS’s future growth? Take a look at our free research report of analyst consensus for CRIS’s outlook.
Financial Health: Is CRIS’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 December 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.
