IDEAYA Biosciences (NASDAQ:IDYA) delivers shareholders splendid 28% CAGR over 3 years, surging 6.8% in the last week alone
The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But in contrast you can make much more than 100% if the company does well. For example, the IDEAYA Biosciences, Inc. (NASDAQ:IDYA) share price has soared 111% in the last three years. That sort of return is as solid as granite. It's also good to see the share price up 23% over the last quarter.
After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals.
View our latest analysis for IDEAYA Biosciences
Because IDEAYA Biosciences made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
In the last 3 years IDEAYA Biosciences saw its revenue grow at 78% per year. That's much better than most loss-making companies. Along the way, the share price gained 28% per year, a solid pop by our standards. But it does seem like the market is paying attention to strong revenue growth. That's not to say we think the share price is too high. In fact, it might be worth keeping an eye on this one.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.
A Different Perspective
IDEAYA Biosciences shareholders are down 23% over twelve months, which isn't far from the market return of -22%. Over the last three years, shareholders booked a gain of 28% per year - better than the last year, that's for sure!. One might wonder whether the recent sell-off could be an opportunity. It might be worth investigating the quality of the business. 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. To that end, you should be aware of the 2 warning signs we've spotted with IDEAYA Biosciences .
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US 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.
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