BioCryst Pharmaceuticals' (NASDAQ:BCRX) growing losses don't faze investors as the stock spikes 12% this past week

By
Simply Wall St
Published
February 17, 2022
NasdaqGS:BCRX
Source: Shutterstock

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But on a lighter note, a good company can see its share price rise well over 100%. For instance, the price of BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) stock is up an impressive 237% over the last five years. It's also good to see the share price up 68% over the last quarter.

The past week has proven to be lucrative for BioCryst Pharmaceuticals investors, so let's see if fundamentals drove the company's five-year performance.

View our latest analysis for BioCryst Pharmaceuticals

Given that BioCryst Pharmaceuticals didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last 5 years BioCryst Pharmaceuticals saw its revenue grow at 25% per year. That's well above most pre-profit companies. Meanwhile, its share price performance certainly reflects the strong growth, given the share price grew at 28% per year, compound, during the period. This suggests the market has well and truly recognized the progress the business has made. BioCryst Pharmaceuticals seems like a high growth stock - so growth investors might want to add it to their watchlist.

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

earnings-and-revenue-growth
NasdaqGS:BCRX Earnings and Revenue Growth February 17th 2022

It's good to see that there was some significant insider buying in the last three months. That's a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. So it makes a lot of sense to check out what analysts think BioCryst Pharmaceuticals will earn in the future (free profit forecasts).

A Different Perspective

It's good to see that BioCryst Pharmaceuticals has rewarded shareholders with a total shareholder return of 85% in the last twelve months. That gain is better than the annual TSR over five years, which is 28%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand BioCryst Pharmaceuticals better, we need to consider many other factors. For instance, we've identified 2 warning signs for BioCryst Pharmaceuticals (1 is a bit concerning) that you should be aware of.

BioCryst Pharmaceuticals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.