It is doubtless a positive to see that the Fulcrum Therapeutics, Inc. (NASDAQ:FULC) share price has gained some 60% in the last three months. But that hardly compensates for the shocking decline over the last twelve months. During that time the share price has plummeted like a stone, down 71%. So it's not that amazing to see a bit of a bounce. The bigger issue is whether the company can sustain the momentum in the long term.
After losing 10% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.
Fulcrum Therapeutics 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Fulcrum Therapeutics' revenue didn't grow at all in the last year. In fact, it fell 5.1%. That looks pretty grim, at a glance. The market obviously agrees, since the share price tanked 71%. That's a stern reminder that profitless companies need to grow the top line, at the very least. Of course, extreme share price falls can be an opportunity for those who are willing to really dig deeper to understand a high risk company like this.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
A Different Perspective
The last twelve months weren't great for Fulcrum Therapeutics shares, which performed worse than the market, costing holders 71%. The market shed around 21%, no doubt weighing on the stock price. Fortunately the longer term story is brighter, with total returns averaging about 6% per year over three years. The recent sell-off could be an opportunity if the business remains sound, so it may be worth checking the fundamental data for signs of a long-term growth trend. It's always interesting to track share price performance over the longer term. But to understand Fulcrum Therapeutics better, we need to consider many other factors. For instance, we've identified 4 warning signs for Fulcrum Therapeutics (1 is potentially serious) that you should be aware of.
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 US 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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