U.S. Markets open in 1 hr 44 mins
  • S&P Futures

    4,147.25
    -36.25 (-0.87%)
     
  • Dow Futures

    34,484.00
    -184.00 (-0.53%)
     
  • Nasdaq Futures

    13,160.75
    -196.00 (-1.47%)
     
  • Russell 2000 Futures

    2,173.90
    -35.70 (-1.62%)
     
  • Crude Oil

    64.26
    -0.66 (-1.02%)
     
  • Gold

    1,841.40
    +3.80 (+0.21%)
     
  • Silver

    27.59
    +0.10 (+0.37%)
     
  • EUR/USD

    1.2170
    +0.0035 (+0.2921%)
     
  • 10-Yr Bond

    1.6020
    0.0000 (0.00%)
     
  • Vix

    21.57
    +4.88 (+29.24%)
     
  • GBP/USD

    1.4145
    +0.0023 (+0.1641%)
     
  • USD/JPY

    108.6300
    -0.2110 (-0.1939%)
     
  • BTC-USD

    55,591.35
    -2,617.08 (-4.50%)
     
  • CMC Crypto 200

    1,598.31
    +37.01 (+2.37%)
     
  • FTSE 100

    6,964.80
    -158.88 (-2.23%)
     
  • Nikkei 225

    28,608.59
    -909.71 (-3.08%)
     

UroGen Pharma's(NASDAQ:URGN) Share Price Is Down 50% Over The Past Three Years.

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Simply Wall St
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

If you are building a properly diversified stock portfolio, the chances are some of your picks will perform badly. Long term UroGen Pharma Ltd. (NASDAQ:URGN) shareholders know that all too well, since the share price is down considerably over three years. Regrettably, they have had to cope with a 50% drop in the share price over that period. The more recent news is of little comfort, with the share price down 45% in a year. Shareholders have had an even rougher run lately, with the share price down 15% in the last 90 days.

Check out our latest analysis for UroGen Pharma

UroGen Pharma 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 three years UroGen Pharma saw its revenue shrink by 113% per year. That means its revenue trend is very weak compared to other loss making companies. With no profits and falling revenue it is no surprise that investors have been dumping the stock, pushing the price down by 15% per year over that time. When revenue is dropping, and losses are still costing, and the share price sinking fast, it's fair to ask if something is remiss. It could be a while before the company repays long suffering shareholders with share price gains.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

earnings-and-revenue-growth
earnings-and-revenue-growth

It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. So it makes a lot of sense to check out what analysts think UroGen Pharma will earn in the future (free profit forecasts).

A Different Perspective

UroGen Pharma shareholders are down 45% for the year, but the broader market is up 25%. Of course the long term matters more than the short term, and even great stocks will sometimes have a poor year. Shareholders have lost 15% per year over the last three years, so the share price drop has become steeper, over the last year; a potential symptom of as yet unsolved challenges. Although Baron Rothschild famously said to "buy when there's blood in the streets, even if the blood is your own", he also focusses on high quality stocks with solid prospects. 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. Consider risks, for instance. Every company has them, and we've spotted 3 warning signs for UroGen Pharma you should know about.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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 editorial-team@simplywallst.com.