Swelling losses haven't held back gains for Chiome Bioscience (TSE:4583) shareholders since they're up 51% over 1 year

It's been a soft week for Chiome Bioscience Inc. (TSE:4583) shares, which are down 13%. But that doesn't change the fact that the returns over the last year have been pleasing. To wit, it had solidly beat the market, up 51%.

While the stock has fallen 13% this week, it's worth focusing on the longer term and seeing if the stocks historical returns have been driven by the underlying fundamentals.

See our latest analysis for Chiome Bioscience

Chiome Bioscience 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. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Chiome Bioscience actually shrunk its revenue over the last year, with a reduction of 19%. Despite the lack of revenue growth, the stock has returned a solid 51% the last twelve months. 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 below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

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

A Different Perspective

It's good to see that Chiome Bioscience has rewarded shareholders with a total shareholder return of 51% in the last twelve months. Notably the five-year annualised TSR loss of 1.6% per year compares very unfavourably with the recent share price performance. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. 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. For instance, we've identified 4 warning signs for Chiome Bioscience (1 is concerning) that you should be aware of.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation).

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

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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.