Syros Pharmaceuticals, Inc. (NASDAQ:SYRS) shareholders have seen the share price descend 14% over the month. But looking back over the last year, the returns have actually been rather pleasing! In that time we've seen the stock easily surpass the market return, with a gain of 57%.
Syros Pharmaceuticals 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. 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.
Syros Pharmaceuticals grew its revenue by 319% last year. That's a head and shoulders above most loss-making companies. While the share price gain of 57% over twelve months is pretty tasty, you might argue it doesn't fully reflect the strong revenue growth. So quite frankly it could be a good time to investigate Syros Pharmaceuticals in some detail. Since we evolved from monkeys, we think in linear terms by nature. So if growth goes exponential, opportunity may exist for the enlightened.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
This free interactive report on Syros Pharmaceuticals' balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
It's nice to see that Syros Pharmaceuticals shareholders have gained 57% (in total) over the last year. That certainly beats the loss of about 4% per year over three years. The optimist would say this is evidence that the stock has bottomed, and better days lie ahead. 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. For instance, we've identified 3 warning signs for Syros Pharmaceuticals that you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
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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What are the risks and opportunities for Syros Pharmaceuticals?
Revenue is forecast to grow 63.15% per year
Shareholders have been substantially diluted in the past year
Does not have a meaningful market cap ($100M)
Currently unprofitable and not forecast to become profitable over the next 3 years
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Syros Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development of treatments for cancer and monogenic diseases, and building a pipeline of gene control medicines.
Excellent balance sheet and fair value.