Yahoo Finance Ultragenyx Pharmaceutical (NASDAQ:RARE) shareholders have endured a 55% loss from investing in the stock a year ago
The nature of investing is that you win some, and you lose some. Unfortunately, shareholders of Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) have suffered share price declines over the last year. In that relatively short period, the share price has plunged 55%. Longer term shareholders haven't suffered as badly, since the stock is down a comparatively less painful 7.0% in three years. The falls have accelerated recently, with the share price down 25% in the last three months. We note that the company has reported results fairly recently; and the market is hardly delighted. You can check out the latest numbers in our company report.
Now let's have a look at the company's fundamentals, and see if the long term shareholder return has matched the performance of the underlying business.
View our latest analysis for Ultragenyx Pharmaceutical
Given that Ultragenyx Pharmaceutical didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. 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.
In just one year Ultragenyx Pharmaceutical saw its revenue fall by 4.5%. That's not what investors generally want to see. In the absence of profits, it's not unreasonable that the share price fell 55%. Fingers crossed this is the low ebb for the stock. We have a natural aversion to companies that are losing money and shrinking revenue. But perhaps that is being too careful.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
Ultragenyx Pharmaceutical is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. You can see what analysts are predicting for Ultragenyx Pharmaceutical in this interactive graph of future profit estimates.
A Different Perspective
We regret to report that Ultragenyx Pharmaceutical shareholders are down 55% for the year. Unfortunately, that's worse than the broader market decline of 21%. 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. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 5% over the last half decade. 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. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - Ultragenyx Pharmaceutical has 3 warning signs we think you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
