Assessing ProQR Therapeutics NV’s (NASDAQ:PRQR) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess PRQR’s recent performance announced on 30 September 2017 and evaluate these figures to its long-term trend and industry movements. See our latest analysis for ProQR Therapeutics
How Did PRQR’s Recent Performance Stack Up Against Its Past?
For the most up-to-date info, I use the ‘latest twelve-month’ data, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This allows me to assess different stocks on a similar basis, using the most relevant data points. For ProQR Therapeutics, its most recent bottom-line is -€41.2M, which, in comparison to last year’s level, has become more negative. Given that these figures may be somewhat short-term thinking, I’ve created an annualized five-year figure for PRQR’s earnings, which stands at -€21.4M. This doesn’t look much better, as earnings seem to have gradually been getting more and more negative over time.Additionally, we can evaluate ProQR Therapeutics’s loss by looking at what has been happening in the industry as well as within the company. Firstly, I want to briefly look into the line items. Revenue growth over the past couple of years has increased by 38.57%, indicating that ProQR Therapeutics is in a high-growth phase with expenses racing ahead elevated top-line growth rates, leading to yearly losses. Inspecting growth from a sector-level, the US biotechnology industry has been growing its average earnings by double-digit 11.07% over the previous twelve months, and 20.18% over the previous five years. This means that any uplift the industry is enjoying, ProQR Therapeutics has not been able to realize the gains unlike its average peer.
What does this mean?
While past data is useful, it doesn’t tell the whole story. With companies that are currently loss-making, it is always difficult to envisage what will occur going forward, and when. The most insightful step is to assess company-specific issues ProQR Therapeutics may be facing and whether management guidance has consistently been met in the past. I recommend you continue to research ProQR Therapeutics to get a better picture of the stock by looking at:
1. Financial Health: Is PRQR’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.
2. 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.NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.