Mabpharm Limited (HKG:2181) shareholders should be happy to see the share price up 15% in the last week. But that doesn't change the fact that the returns over the last year have been less than pleasing. In fact, the price has declined 28% in a year, falling short of the returns you could get by investing in an index fund.
The recent uptick of 15% could be a positive sign of things to come, so let's take a lot at historical fundamentals.
View our latest analysis for Mabpharm
Mabpharm isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
SEHK:2181 Earnings and Revenue Growth May 1st 2022Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.
A Different Perspective
Mabpharm shareholders are down 28% for the year, even worse than the market loss of 21%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. With the stock down 12% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. It's always interesting to track share price performance over the longer term. But to understand Mabpharm better, we need to consider many other factors. For example, we've discovered 2 warning signs for Mabpharm that you should be aware of before investing here.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on HK 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.