Announcing: Affimed (NASDAQ:AFMD) Stock Increased An Energizing 177% In The Last Three Years

Affimed N.V. (NASDAQ:AFMD) shareholders might be concerned after seeing the share price drop 11% in the last month. But in three years the returns have been great. In fact, the share price is up a full 177% compared to three years ago. To some, the recent share price pullback wouldn't be surprising after such a good run. Only time will tell if there is still too much optimism currently reflected in the share price.

See our latest analysis for Affimed

Because Affimed 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. 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 the last 3 years Affimed saw its revenue grow at 49% per year. That's much better than most loss-making companies. Meanwhile, the share price performance has been pretty solid at 40% compound over three years. But it does seem like the market is paying attention to strong revenue growth. Nonetheless, we'd say Affimed is still worth investigating - successful businesses can often keep growing for long periods.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

Take a more thorough look at Affimed's financial health with this free report on its balance sheet.

A Different Perspective

It's good to see that Affimed has rewarded shareholders with a total shareholder return of 141% in the last twelve months. That gain is better than the annual TSR over five years, which is 13%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. 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. Take risks, for example - Affimed has 3 warning signs (and 1 which doesn't sit too well with us) we think you should know about.

Of course Affimed may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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