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It hasn't been the best quarter for PTC Therapeutics, Inc. (NASDAQ:PTCT) shareholders, since the share price has fallen 15% in that time. But the silver lining is the stock is up over five years. However we are not very impressed because the share price is only up 21%, less than the market return of 69%.
So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress.
Check out our latest analysis for PTC Therapeutics
Because PTC Therapeutics made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
In the last 5 years PTC Therapeutics saw its revenue grow at 25% per year. Even measured against other revenue-focussed companies, that's a good result. While long-term shareholders have made money, the 4% per year gain over five years fall short of the market return. That's surprising given the strong revenue growth. It could be that the stock was previously over-priced - but if you're looking for underappreciated growth stocks, these numbers indicate that there might be an opportunity here.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
PTC Therapeutics is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. If you are thinking of buying or selling PTC Therapeutics stock, you should check out this free report showing analyst consensus estimates for future profits.
A Different Perspective
PTC Therapeutics shareholders gained a total return of 3.0% during the year. But that return falls short of the market. On the bright side, the longer term returns (running at about 4% a year, over half a decade) look better. Maybe the share price is just taking a breather while the business executes on its growth strategy. It's always interesting to track share price performance over the longer term. But to understand PTC Therapeutics better, we need to consider many other factors. To that end, you should learn about the 4 warning signs we've spotted with PTC Therapeutics (including 1 which can't be ignored) .
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.