Stock Analysis

Investors Who Bought Fusion Antibodies (LON:FAB) Shares A Year Ago Are Now Up 146%

AIM:FAB
Source: Shutterstock

When you buy shares in a company, there is always a risk that the price drops to zero. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Fusion Antibodies plc (LON:FAB) share price has soared 146% in the last year. Most would be very happy with that, especially in just one year! Better yet, the share price has risen 28% in the last week. The longer term returns have not been as good, with the stock price only 24% higher than it was three years ago.

See our latest analysis for Fusion Antibodies

Fusion Antibodies wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong 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.

Fusion Antibodies grew its revenue by 23% last year. That's a fairly respectable growth rate. While that revenue growth is pretty good the share price performance outshone it, with a lift of 146% as mentioned above. If the profitability is on the horizon then now could be a very exciting time to be a shareholder. But investors need to be wary of how the 'fear of missing out' could influence them to buy without doing thorough research.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

earnings-and-revenue-growth
AIM:FAB Earnings and Revenue Growth March 17th 2021

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

It's nice to see that Fusion Antibodies shareholders have gained 146% (in total) over the last year. That gain actually surpasses the 8% TSR it generated (per year) over three years. Given the track record of solid returns over varying time frames, it might be worth putting Fusion Antibodies on your watchlist. It's always interesting to track share price performance over the longer term. But to understand Fusion Antibodies better, we need to consider many other factors. To that end, you should learn about the 5 warning signs we've spotted with Fusion Antibodies (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.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on GB exchanges.

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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. 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.
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About AIM:FAB

Fusion Antibodies

A contract research organization, engages in the research, development, and manufacture of recombinant proteins and antibodies primarily for cancer and infectious diseases in the United Kingdom, the rest of Europe, North America, and internationally.

Medium-low with adequate balance sheet.