Bellerophon Therapeutics (NASDAQ:BLPH) shareholder returns have been incredible, earning 978% in 1 year

Simply Wall St

Active investing isn't easy, but for those that do it, the aim is to find the best companies to buy, and to profit handsomely. When you buy and hold the right company, the returns can make a huge difference to both you and your family. For example, Bellerophon Therapeutics, Inc. (NASDAQ:BLPH) has generated a beautiful 978% return in just a single year. On top of that, the share price is up 588% in about a quarter. This could be related to the recent financial results, released recently - you can catch up on the most recent data by reading our company report. Zooming out, the stock is actually down 20% in the last three years. Anyone who held for that rewarding ride would probably be keen to talk about it.

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

Check out our latest analysis for Bellerophon Therapeutics

SWOT Analysis for Bellerophon Therapeutics

Strength
  • Currently debt free.
Weakness
  • Shareholders have been diluted in the past year.
Opportunity
  • Good value based on P/S ratio and estimated fair value.
Threat
  • Has less than 3 years of cash runway based on current free cash flow.

Because Bellerophon Therapeutics 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

NasdaqCM:BLPH Earnings and Revenue Growth May 17th 2023

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

A Different Perspective

We're pleased to report that Bellerophon Therapeutics shareholders have received a total shareholder return of 978% over one year. There's no doubt those recent returns are much better than the TSR loss of 11% per year over five years. 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. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that Bellerophon Therapeutics is showing 4 warning signs in our investment analysis , and 2 of those make us uncomfortable...

But note: Bellerophon Therapeutics may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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

Valuation is complex, but we're here to simplify it.

Discover if Bellerophon Therapeutics might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.