Further weakness as UroGen Pharma (NASDAQ:URGN) drops 10% this week, taking five-year losses to 67%

We think intelligent long term investing is the way to go. But no-one is immune from buying too high. For example, after five long years the UroGen Pharma Ltd. (NASDAQ:URGN) share price is a whole 67% lower. That is extremely sub-optimal, to say the least. And it's not just long term holders hurting, because the stock is down 36% in the last year. Shareholders have had an even rougher run lately, with the share price down 23% in the last 90 days.

If the past week is anything to go by, investor sentiment for UroGen Pharma isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

Check out our latest analysis for UroGen Pharma

UroGen Pharma 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. When a company doesn't make profits, we'd generally hope to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Over five years, UroGen Pharma grew its revenue at 46% per year. That's better than most loss-making companies. Unfortunately for shareholders the share price has dropped 11% per year - disappointing considering the growth. This could mean high expectations have been tempered, potentially because investors are looking to the bottom line. If you think the company can keep up its revenue growth, you'd have to consider the possibility that there's an opportunity here.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

If you are thinking of buying or selling UroGen Pharma stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Investors in UroGen Pharma had a tough year, with a total loss of 36%, against a market gain of about 25%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 11% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - UroGen Pharma has 1 warning sign we think you should be aware of.

If you are like me, then you will not want to miss this free list of undervalued small caps that insiders are buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.