Even after rising 3.4% this past week, Ultragenyx Pharmaceutical (NASDAQ:RARE) shareholders are still down 65% over the past three years
If you are building a properly diversified stock portfolio, the chances are some of your picks will perform badly. But long term Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) shareholders have had a particularly rough ride in the last three year. So they might be feeling emotional about the 65% share price collapse, in that time. Shareholders have had an even rougher run lately, with the share price down 23% in the last 90 days. Of course, this share price action may well have been influenced by the 9.8% decline in the broader market, throughout the period.
The recent uptick of 3.4% could be a positive sign of things to come, so let's take a look at historical fundamentals.
View our latest analysis for Ultragenyx Pharmaceutical
Ultragenyx Pharmaceutical 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. 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.
Over three years, Ultragenyx Pharmaceutical grew revenue at 18% per year. That's a pretty good rate of top-line growth. That contrasts with the weak share price, which has fallen 18% compounded, over three years. To be frank we're surprised to see revenue growth and share price growth diverge so strongly. So this is one stock that might be worth investigating further, or even adding to your watchlist.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
Ultragenyx Pharmaceutical is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. If you are thinking of buying or selling Ultragenyx Pharmaceutical stock, you should check out this free report showing analyst consensus estimates for future profits.
A Different Perspective
While the broader market gained around 7.9% in the last year, Ultragenyx Pharmaceutical shareholders lost 18%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 7% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For instance, we've identified 3 warning signs for Ultragenyx Pharmaceutical that you should be aware of.
We will like Ultragenyx Pharmaceutical better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
