Does Celsion Corporation's (NASDAQ:CLSN) Past Performance Indicate A Stronger Future?

Examining Celsion Corporation's (NASDAQ:CLSN) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess CLSN's latest performance announced on 30 September 2017 and compare these figures to its longer term trend and industry movements. Check out our latest analysis for Celsion

Were CLSN's earnings stronger than its past performances and the industry?

To account for any quarterly or half-yearly updates, I use data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This technique allows me to analyze different companies on a more comparable basis, using the latest information. For Celsion, its most recent trailing-twelve-month earnings is -US$21.46M, which compared to the previous year's level, has become less negative. Since these figures may be somewhat short-term thinking, I have determined an annualized five-year figure for Celsion's net income, which stands at -US$21.86M. This means although net income is negative, it has become less negative over the years.

We can further assess Celsion's loss by looking at what the industry has been experiencing over the past few years. Each year, for the past half a decade Celsion has seen an annual decline in revenue of -21.19%, on average. This adverse movement is a driver of the company's inability to reach breakeven. Has the entire industry experienced this headwind? Viewing growth from a sector-level, the US biotechs industry has been growing its average earnings by double-digit 24.94% in the previous twelve months, and 20.25% over the past five. This shows that any uplift the industry is benefiting from, Celsion has not been able to gain as much as its average peer.

What does this mean?

Though Celsion's past data is helpful, it is only one aspect of my investment thesis. With companies that are currently loss-making, it is always hard to envisage what will occur going forward, and when. The most valuable step is to examine company-specific issues Celsion may be facing and whether management guidance has steadily been met in the past. I recommend you continue to research Celsion to get a more holistic view of the stock by looking at:

• 1. Future Outlook: What are well-informed industry analysts predicting for CLSN’s future growth? Take a look at our free research report of analyst consensus for CLSN’s outlook.
• 2. Financial Health: Is CLSN’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
• 3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

NB: Figures in this article are calculated using data from the trailing twelve months from 30 September 2017. This may not be consistent with full year annual report figures.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.