Stock Analysis

UroGen Pharma's(NASDAQ:URGN) Share Price Is Down 50% Over The Past Three Years.

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NasdaqGM:URGN
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In order to justify the effort of selecting individual stocks, it's worth striving to beat the returns from a market index fund. But the risk of stock picking is that you will likely buy under-performing companies. Unfortunately, that's been the case for longer term UroGen Pharma Ltd. (NASDAQ:URGN) shareholders, since the share price is down 50% in the last three years, falling well short of the market return of around 49%. And more recent buyers are having a tough time too, with a drop of 45% in the last year. Even worse, it's down 20% in about a month, which isn't fun at all.

Check out our latest analysis for UroGen Pharma

UroGen Pharma isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. 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.

Over the last three years, UroGen Pharma's revenue dropped 113% per year. That means its revenue trend is very weak compared to other loss making companies. On the face of it we'd posit the share price fall of 14% compound, over three years is well justified by the fundamental deterioration. It would probably be worth asking whether the company can fund itself to profitability. Of course, it is possible for businesses to bounce back from a revenue drop - but we'd want to see that before getting interested.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

earnings-and-revenue-growth
NasdaqGM:URGN Earnings and Revenue Growth December 8th 2020

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

UroGen Pharma shareholders are down 45% for the year, but the broader market is up 26%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. The three-year loss of 14% per year isn't as bad as the last twelve months, suggesting that the company has not been able to convince the market it has solved its problems. We would be wary of buying into a company with unsolved problems, although some investors will buy into struggling stocks if they believe the price is sufficiently attractive. 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 UroGen Pharma that you should be aware of.

But note: UroGen Pharma may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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 UroGen Pharma?

UroGen Pharma Ltd., a biotechnology company, engages in the development and commercialization novel solutions for specialty cancers and urothelial diseases.

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Rewards

  • Trading at 94.7% below our estimate of its fair value

  • Earnings are forecast to grow 56.11% per year

Risks

  • Negative shareholders equity

  • Shareholders have been diluted in the past year

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