It might be of some concern to shareholders to see the Twist Bioscience Corporation (NASDAQ:TWST) share price down 13% in the last month. On the other hand, over the last twelve months the stock has delivered rather impressive returns. Like an eagle, the share price soared 107% in that time. So it is important to view the recent reduction in price through that lense. More important, going forward, is how the business itself is going.
Twist Bioscience isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. 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 the last twelve months, Twist Bioscience's revenue grew by 56%. That's a head and shoulders above most loss-making companies. Meanwhile, the market has paid attention, sending the share price soaring 107% in response. That sort of revenue growth is bound to attract attention, even if the company doesn't turn a profit. Given the positive sentiment around the stock we're cautious, but there's no doubt its worth watching.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
Take a more thorough look at Twist Bioscience's financial health with this free report on its balance sheet.
A Different Perspective
Twist Bioscience shareholders should be happy with the total gain of 107% over the last twelve months. A substantial portion of that gain has come in the last three months, with the stock up 52% in that time. This suggests the company is continuing to win over new investors. 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. For instance, we've identified 4 warning signs for Twist Bioscience that you should be aware of.
We will like Twist Bioscience 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 US 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 email@example.com.