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It hasn’t been the best quarter for KalVista Pharmaceuticals, Inc. (NASDAQ:KALV) shareholders, since the share price has fallen 28% in that time. But that doesn’t change the fact that the returns over the last year have been very strong. Indeed, the share price is up an impressive 156% in that time. So we think most shareholders won’t be too upset about the recent fall. Investors should be wondering whether the business itself has the fundamental value required to continue to drive gains.
Because KalVista Pharmaceuticals is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. 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 year KalVista Pharmaceuticals saw its revenue grow by 392%. That’s stonking growth even when compared to other loss-making stocks. Meanwhile, the market has paid attention, sending the share price soaring 156% in response. That sort of revenue growth is bound to attract attention, even if the company doesn’t turn a profit. Given the positive sentiment around the stock we’re cautious, but there’s no doubt its worth watching.
This free interactive report on KalVista Pharmaceuticals’s balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
KalVista Pharmaceuticals boasts a total shareholder return of 156% for the last year. Unfortunately the share price is down 28% over the last quarter. It may simply be that the share price got ahead of itself, although there may have been fundamental developments that are weighing on it. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.
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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 email@example.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.