Its nice to see the Curis, Inc. (NASDAQ:CRIS) share price up 15% in a week. But the last three years have seen a terrible decline. Indeed, the share price is down a whopping 90% in the last three years. So were relieved for long term holders to see a bit of uplift. The thing to think about is whether the business has really turned around.
While a drop like that is definitely a body blow, money isnt as important as health and happiness.
View our latest analysis for Curis
Curis isnt 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last three years, Curis saw its revenue grow by 9.7% per year, compound. Thats a pretty good rate of top-line growth. So its hard to believe the share price decline of 54% per year is due to the revenue. It could be that the losses were much larger than expected. If you buy into companies that lose money then you always risk losing money yourself. Just dont lose the lesson.
The graphic below depicts how revenue has changed over time.
This free interactive report on Curiss balance sheet strength is a great place to start, if you want to investigate the stock further.
Were pleased to report that Curis shareholders have received a total shareholder return of 32% over one year. Notably the five-year annualised TSR loss of 26% per year compares very unfavourably with the recent share price performance. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. You could get a better understanding of Curiss growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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Originally posted here:
Introducing Curis (NASDAQ:CRIS), The Stock That Tanked 90% - Simply Wall St
