Stock Analysis

If You Had Bought uniQure (NASDAQ:QURE) Shares Five Years Ago You'd Have Earned 162% Returns

  •  Updated
NasdaqGS:QURE
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It hasn't been the best quarter for uniQure N.V. (NASDAQ:QURE) shareholders, since the share price has fallen 24% in that time. But in stark contrast, the returns over the last half decade have impressed. In fact, the share price is 162% higher today. Generally speaking the long term returns will give you a better idea of business quality than short periods can. The more important question is whether the stock is too cheap or too expensive today.

Check out our latest analysis for uniQure

uniQure wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. 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 half decade uniQure's revenue has actually been trending down at about 19% per year. Given that scenario, we wouldn't have expected the share price to rise 21% per year, but that's what it did. It just goes to show tht the market is forward looking, and it's not always easy to predict the future based on past trends. Still, this situation makes us a little wary of the stock.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth
NasdaqGS:QURE Earnings and Revenue Growth March 1st 2021

uniQure is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. So we recommend checking out this free report showing consensus forecasts

A Different Perspective

uniQure shareholders are down 29% for the year, but the market itself is up 40%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 21%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Take risks, for example - uniQure has 5 warning signs (and 1 which can't be ignored) we think you should know about.

Of course uniQure may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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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