Today I will take a look at Nymox Pharmaceutical Corporation’s (NASDAQ:NYMX) most recent earnings update (30 September 2017) and compare these latest figures against its performance over the past few years, as well as how the rest of the biotechs industry performed. As an investor, I find it beneficial to assess NYMX’s trend over the short-to-medium term in order to gauge whether or not the company is able to meet its goals, and ultimately sustainably grow over time. See our latest analysis for Nymox Pharmaceutical
How Did NYMX’s Recent Performance Stack Up Against Its Past?
I look at the ‘latest twelve-month’ data, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This blend allows me to examine different stocks on a similar basis, using new information. For Nymox Pharmaceutical, its latest earnings (trailing twelve month) is -US$12.94M, which, in comparison to the previous year’s level, has become less negative. Given that these values are fairly short-term thinking, I have estimated an annualized five-year figure for NYMX’s net income, which stands at -US$9.66M. This means that, Nymox Pharmaceutical has historically performed better than recently, although it seems like earnings are now heading back towards to right direction again.
We can further evaluate Nymox Pharmaceutical’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years Nymox Pharmaceutical has seen an annual decline in revenue of -15.39%, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Has the entire industry experienced this headwind? Scanning growth from a sector-level, the US biotechs industry has been growing its average earnings by double-digit 12.72% in the prior year, and 19.44% over the past five years. This shows that any tailwind the industry is benefiting from, Nymox Pharmaceutical has not been able to gain as much as its average peer.
What does this mean?
Nymox Pharmaceutical’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that incur net loss is always difficult to envisage what will happen in the future and when. The most useful step is to assess company-specific issues Nymox Pharmaceutical may be facing and whether management guidance has consistently been met in the past. I recommend you continue to research Nymox Pharmaceutical to get a better picture of the stock by looking at: