Loss-making Medexus Pharmaceuticals (TSE:MDP) has seen earnings and shareholder returns follow the same downward trajectory over past -63%
Medexus Pharmaceuticals Inc. (TSE:MDP) shareholders should be happy to see the share price up 16% in the last month. But that's not enough to compensate for the decline over the last twelve months. Like a receding glacier in a warming world, the share price has melted 63% in that period. Some might say the recent bounce is to be expected after such a bad drop. Of course, it could be that the fall was overdone.
The recent uptick of 11% could be a positive sign of things to come, so let's take a lot at historical fundamentals.
See our latest analysis for Medexus Pharmaceuticals
Medexus Pharmaceuticals isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. 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.
In the last twelve months, Medexus Pharmaceuticals increased its revenue by 12%. That's not a very high growth rate considering it doesn't make profits. Without profits, and with revenue growth sluggish, you get a 63% loss for shareholders, over the year. Like many holders, we really want to see better revenue growth in companies that lose money. Of course, the market can be too impatient at times. Why not take a closer look at this one so you're ready to pounce if growth does accelerate.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. So we recommend checking out this free report showing consensus forecasts
A Different Perspective
Investors in Medexus Pharmaceuticals had a tough year, with a total loss of 63%, against a market gain of about 20%. 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. It's always interesting to track share price performance over the longer term. But to understand Medexus Pharmaceuticals better, we need to consider many other factors. Even so, be aware that Medexus Pharmaceuticals is showing 3 warning signs in our investment analysis , you should know about...
There are plenty of other companies that have insiders buying up shares. You probably do 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 CA 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.
