How Much Did Carna Biosciences'(TYO:4572) Shareholders Earn From Share Price Movements Over The Last Five Years?

While it may not be enough for some shareholders, we think it is good to see the Carna Biosciences, Inc. (TYO:4572) share price up 17% in a single quarter. But over the last half decade, the stock has not performed well. You would have done a lot better buying an index fund, since the stock has dropped 33% in that half decade.

View our latest analysis for Carna Biosciences

Because Carna Biosciences made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last half decade, Carna Biosciences saw its revenue increase by 19% per year. That's well above most other pre-profit companies. Shareholders are no doubt disappointed with the loss of 6%, each year, in that time. You could say that the market has been harsh, given the top line growth. If that's the case, now might be the smart time to take a close look at it.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

If you are thinking of buying or selling Carna Biosciences stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

While the broader market gained around 21% in the last year, Carna Biosciences shareholders lost 21%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 6% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Carna Biosciences , and understanding them should be part of your investment process.

We will like Carna Biosciences better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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