CureVac's (NASDAQ:CVAC) investors will be pleased with their 16% return over the last year

CureVac N.V. (NASDAQ:CVAC) shareholders have seen the share price descend 22% over the month. Looking on the brighter side, the stock is actually up over twelve months. However, its return of 16% does fall short of the market return of, 38%.

So let's assess the underlying fundamentals over the last 1 year and see if they've moved in lock-step with shareholder returns.

Check out our latest analysis for CureVac

Given that CureVac 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Over the last twelve months, CureVac's revenue grew by 181%. That's stonking growth even when compared to other loss-making stocks. To be blunt the 16% is underwhelming given the strong revenue growth. When revenue spikes but the share price doesn't we can't help wondering if the market is missing something. It's possible that the market is worried about the losses, or simply that the growth was already priced in. Or, this could be worth adding to your watchlist.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. You can see what analysts are predicting for CureVac in this interactive graph of future profit estimates.

A Different Perspective

CureVac shareholders have gained 16% for the year. The bad news is that's no better than the average market return, which was roughly 38%. The stock trailed the market by 8.5% in that time, testament to the power of passive investing. But a weak quarter certainly doesn't diminish the longer-term achievements of the business. It's always interesting to track share price performance over the longer term. But to understand CureVac better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for CureVac you should be aware of.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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

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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.
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