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Would Shareholders Who Purchased Khiron Life Sciences' (CVE:KHRN) Stock Year Be Happy With The Share price Today?

Simply Wall St
·3 min read

This week we saw the Khiron Life Sciences Corp. (CVE:KHRN) share price climb by 14%. But that doesn't change the fact that the returns over the last year have been disappointing. During that time the share price has sank like a stone, descending 54%. It's not that amazing to see a bounce after a drop like that. Arguably, the fall was overdone.

View our latest analysis for Khiron Life Sciences

Khiron Life Sciences 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.

In the last year Khiron Life Sciences saw its revenue grow by 70%. That's well above most other pre-profit companies. In contrast the share price is down 54% over twelve months. Yes, the market can be a fickle mistress. Typically a growth stock like this will be volatile, with some shareholders concerned about the red ink on the bottom line (that is, the losses). We'd definitely consider it a positive if the company is trending towards profitability. If you can see that happening, then perhaps consider adding this stock to your watchlist.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

earnings-and-revenue-growth
earnings-and-revenue-growth

We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. If you are thinking of buying or selling Khiron Life Sciences stock, you should check out this free report showing analyst profit forecasts.

A Different Perspective

While Khiron Life Sciences shareholders are down 54% for the year, the market itself is up 3.3%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. With the stock down 20% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. 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 example, we've discovered 3 warning signs for Khiron Life Sciences that you should be aware of before investing here.

Khiron Life Sciences is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.