In This Article:
The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. To wit, the Vivoryon Therapeutics N.V. (AMS:VVY) share price has flown 107% in the last three years. That sort of return is as solid as granite. It's also good to see the share price up 15% over the last quarter. But this could be related to the strong market, which is up 12% in the last three months.
So let's assess the underlying fundamentals over the last 3 years and see if they've moved in lock-step with shareholder returns.
View our latest analysis for Vivoryon Therapeutics
Vivoryon Therapeutics isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Over the last three years Vivoryon Therapeutics has grown its revenue at 129% annually. That's well above most pre-profit companies. Along the way, the share price gained 27% per year, a solid pop by our standards. But it does seem like the market is paying attention to strong revenue growth. That's not to say we think the share price is too high. In fact, it might be worth keeping an eye on this one.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. So it makes a lot of sense to check out what analysts think Vivoryon Therapeutics will earn in the future (free profit forecasts).
A Different Perspective
We regret to report that Vivoryon Therapeutics shareholders are down 44% for the year. Unfortunately, that's worse than the broader market decline of 19%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 1.0% per year over five years. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. It's always interesting to track share price performance over the longer term. But to understand Vivoryon Therapeutics better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for Vivoryon Therapeutics you should be aware of, and 1 of them is concerning.