It certainly might concern Inovio Pharmaceuticals, Inc. (NASDAQ:INO) shareholders to see the share price down 34% in just 30 days. In contrast, the return over three years has been impressive. The share price marched upwards over that time, and is now 112% higher than it was. It's not uncommon to see a share price retrace a bit, after a big gain. The fundamental business performance will ultimately dictate whether the top is in, or if this is a stellar buying opportunity.
Given that Inovio Pharmaceuticals 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Inovio Pharmaceuticals actually saw its revenue drop by 80% per year over three years. So we wouldn't have expected the share price to gain 28% per year, but it has. It's fair to say shareholders are definitely counting on a bright future.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
A Different Perspective
Inovio Pharmaceuticals provided a TSR of 40% over the last twelve months. But that return falls short of the market. The silver lining is that the gain was actually better than the average annual return of 5% per year over five year. This could indicate that the company is winning over new investors, as it pursues its strategy. It's always interesting to track share price performance over the longer term. But to understand Inovio Pharmaceuticals better, we need to consider many other factors. Even so, be aware that Inovio Pharmaceuticals is showing 2 warning signs in our investment analysis , you should know about...
We will like Inovio Pharmaceuticals better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
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. 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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