Assessing GlycoMimetics Inc’s (NASDAQ:GLYC) performance as a company requires looking at more than just a years’ earnings data. Below, I will run you through a simple sense check to build perspective on how GlycoMimetics is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its biotechnology industry peers. See our latest analysis for GlycoMimetics
How Did GLYC’s Recent Performance Stack Up Against Its Past?
I like to use the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This method enables me to analyze many different companies on a similar basis, using new information. For GlycoMimetics, its most recent bottom-line (trailing twelve month) is -$32.4M, which, relative to last year’s level, has become less negative. Since these values may be somewhat myopic, I’ve determined an annualized five-year figure for GlycoMimetics’s earnings, which stands at -$14.8M. This suggests that, GlycoMimetics has historically performed better than recently, though it seems like earnings are now heading back towards to right direction again.
We can further examine GlycoMimetics’s loss by looking at what has been happening in the industry as well as within the company. Firstly, I want to quickly look into the line items. Revenue growth over the last couple of years has been negative at -16.08%. The key to profitability here is to make sure the company’s cost growth is well-controlled. Looking at growth from a sector-level, the US biotechnology industry has been growing its average earnings by double-digit 11.07% in the past twelve months, and 20.18% over the previous five years. This suggests that any uplift the industry is profiting from, GlycoMimetics has not been able to reap as much as its average peer.
What does this mean?
Though GlycoMimetics’s past data is helpful, it is only one aspect of my investment thesis. With companies that are currently loss-making, it is always difficult to predict what will occur going forward, and when. The most insightful step is to examine company-specific issues GlycoMimetics may be facing and whether management guidance has regularly been met in the past. I suggest you continue to research GlycoMimetics to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for GLYC’s future growth? Take a look at our free research report of analyst consensus for GLYC’s outlook.
2. Financial Health: Is GLYC’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.
3. 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 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.