Those Who Purchased Curis (NASDAQ:CRIS) Shares Three Years Ago Have A 74% Loss To Show For It

Curis, Inc. (NASDAQ:CRIS) shareholders should be happy to see the share price up 30% in the last month. But the last three years have seen a terrible decline. To wit, the share price sky-dived 74% in that time. So it sure is nice to see a big of an improvement. But the more important question is whether the underlying business can justify a higher price still.

View our latest analysis for Curis

Curis isn’t currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. 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 three years, Curis saw its revenue grow by 13% per year, compound. That’s a pretty good rate of top-line growth. So it’s hard to believe the share price decline of 36% per year is due to the revenue. More likely, the market was spooked by the cost of that revenue. If you buy into companies that lose money then you always risk losing money yourself. Just don’t lose the lesson.

NasdaqGM:CRIS Income Statement, August 7th 2019
NasdaqGM:CRIS Income Statement, August 7th 2019

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

It’s nice to see that Curis shareholders have received a total shareholder return of 36% over the last year. There’s no doubt those recent returns are much better than the TSR loss of 23% 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. You could get a better understanding of Curis’s growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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