Cellectis S.A. (EPA:ALCLS) shareholders should be happy to see the share price up 19% in the last month. But in truth the last year hasn’t been good for the share price. In fact the stock is down 26% in the last year, well below the market return.
Because Cellectis is loss-making, 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. That’s because it’s hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
Cellectis’s revenue didn’t grow at all in the last year. In fact, it fell 23%. That’s not what investors generally want to see. The stock price has languished lately, falling 26% in a year. That seems pretty reasonable given the lack of both profits and revenue growth. It’s hard to escape the conclusion that buyers must envision either growth down the track, cost cutting, or both.
You can see how revenue has changed over time in the image below.
Cellectis is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. If you are thinking of buying or selling Cellectis stock, you should check out this free report showing analyst consensus estimates for future profits.
A Different Perspective
Cellectis shareholders are down 26% for the year, but the market itself is up 24%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn’t be so upset, since they would have made 2.5%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on FR exchanges.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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