Improvement in profitability and outperformance against the industry can be important characteristics in a stock for some investors. Below, I will assess Curis Inc’s (NASDAQ:CRIS) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. View our latest analysis for Curis
Were CRIS’s earnings stronger than its past performances and the industry?
I look at the ‘latest twelve-month’ data, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This blend enables me to assess various companies on a more comparable basis, using new information. For Curis, its most recent earnings (trailing twelve month) is -US$53.32M, which compared to last year’s figure, has become less negative. Since these figures are fairly short-term thinking, I’ve computed an annualized five-year figure for Curis’s earnings, which stands at -US$31.74M. This means Curis has historically performed better than recently, while it seems like earnings are now heading back towards a more favorable position once more.We can further analyze Curis’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years Curis has seen an annual decline in revenue of -11.92%, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Has the entire industry experienced this headwind? Scanning growth from a sector-level, the US biotechs industry has been growing its average earnings by double-digit 22.93% over the previous year, and 20.37% over the past five. This means any tailwind the industry is benefiting from, Curis has not been able to realize the gains unlike its industry peers.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that incur net loss is always difficult to predict what will occur going forward, and when. The most insightful step is to examine company-specific issues Curis may be facing and whether management guidance has steadily been met in the past. I recommend you continue to research Curis to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for CRIS’s future growth? Take a look at our free research report of analyst consensus for CRIS’s outlook.
- Financial Health: Is CRIS’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.
- 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.