Understanding how Celyad SA (NASDAQ:CYAD) is performing as a company requires looking at more than just a years’ earnings. Today I will run you through a basic sense check to gain perspective on how Celyad is doing by comparing its latest earnings with its long-term trend as well as the performance of its biotechs industry peers. View our latest analysis for Celyad
Was CYAD’s weak performance lately a part of a long-term decline?
For the purpose of this commentary, I like to use 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 technique allows me to examine different companies on a more comparable basis, using the latest information. For Celyad, its most recent earnings (trailing twelve month) is -€56.39M, which, in comparison to the prior year’s level, has become more negative. Since these values are somewhat short-term, I’ve created an annualized five-year value for Celyad’s earnings, which stands at -€22.24M. This doesn’t look much better, as earnings seem to have gradually been getting more and more negative over time.We can further examine Celyad’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years Celyad’s top-line has grown by 68.02% on average, indicating that the company is in a high-growth period with expenses racing ahead revenues, leading to annual losses. Scanning growth from a sector-level, the US biotechs industry has been growing its average earnings by double-digit 22.93% in the past twelve months, and 19.64% over the past half a decade. This means whatever uplift the industry is benefiting from, Celyad 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 hard to predict what will occur going forward, and when. The most valuable step is to assess company-specific issues Celyad may be facing and whether management guidance has steadily been met in the past. You should continue to research Celyad to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for CYAD’s future growth? Take a look at our free research report of analyst consensus for CYAD’s outlook.
- Financial Health: Is CYAD’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.