Avadel Pharmaceuticals plc (NASDAQ:AVDL) shareholders might be concerned after seeing the share price drop 12% in the last week. While that might be a setback, it doesn't negate the nice returns received over the last twelve months. To wit, it had solidly beat the market, up 41%.
Avadel Pharmaceuticals 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
Avadel Pharmaceuticals actually shrunk its revenue over the last year, with a reduction of 41%. The stock is up 41% in that time, a fine performance given the revenue drop. We can correlate the share price rise with revenue or profit growth, but it seems the market had previously expected weaker results, and sentiment around the stock is improving.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
A Different Perspective
Avadel Pharmaceuticals boasts a total shareholder return of 41% for the last year. A substantial portion of that gain has come in the last three months, with the stock up 130% in that time. This suggests the company is continuing to win over new investors. If you would like to research Avadel Pharmaceuticals in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.
Of course Avadel Pharmaceuticals may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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