- Oops!Something went wrong.Please try again later.
Some PharmaCielo Ltd. (CVE:PCLO) shareholders are probably rather concerned to see the share price fall 44% over the last three months. While that might be a setback, it doesn't negate the nice returns received over the last twelve months. After all, the share price is up a market-beating 80% in that time.
Given that PharmaCielo didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. 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.
PharmaCielo grew its revenue by 235% last year. That's stonking growth even when compared to other loss-making stocks. While the share price gain of 80% over twelve months is pretty tasty, you might argue it doesn't fully reflect the strong revenue growth. So quite frankly it could be a good time to investigate PharmaCielo in some detail. Since we evolved from monkeys, we think in linear terms by nature. So if growth goes exponential, opportunity may exist for the enlightened.
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 consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. This free report showing analyst forecasts should help you form a view on PharmaCielo
A Different Perspective
It's nice to see that PharmaCielo shareholders have gained 80% over the last year. We regret to report that the share price is down 44% over ninety days. It may simply be that the share price got ahead of itself, although there may have been fundamental developments that are weighing on it. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 5 warning signs with PharmaCielo (at least 2 which shouldn't be ignored) , and understanding them should be part of your investment process.
PharmaCielo is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
This article by Simply Wall St is general in nature. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.