Yahoo Finance Newron Pharmaceuticals (VTX:NWRN) soars 117% this week, taking one-year gains to 104%
Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right stock, you can make a lot more than 100%. For example, the Newron Pharmaceuticals S.p.A. (VTX:NWRN) share price has soared 104% in the last 1 year. Most would be very happy with that, especially in just one year! It's up an even more impressive 183% over the last quarter. On the other hand, longer term shareholders have had a tougher run, with the stock falling 48% in three years.
On the back of a solid 7-day performance, let's check what role the company's fundamentals have played in driving long term shareholder returns.
View our latest analysis for Newron Pharmaceuticals
Newron Pharmaceuticals isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
Newron Pharmaceuticals grew its revenue by 9.2% last year. That's not a very high growth rate considering it doesn't make profits. In contrast, the share price took off during the year, gaining 104%. The business will need a lot more growth to justify that increase. It's quite likely that the market is considering other factors, not just revenue growth.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
Take a more thorough look at Newron Pharmaceuticals' financial health with this free report on its balance sheet.
A Different Perspective
We're pleased to report that Newron Pharmaceuticals shareholders have received a total shareholder return of 104% over one year. There's no doubt those recent returns are much better than the TSR loss of 12% per year over five years. This makes us a little wary, but the business might have turned around its fortunes. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Newron Pharmaceuticals (at least 2 which are potentially serious) , and understanding them should be part of your investment process.
If you are like me, then you will not want to miss this free list of growing companies 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 CH 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.
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