Yahoo Finance Exscientia (NASDAQ:EXAI) shareholders have endured a 55% loss from investing in the stock a year ago
Exscientia plc (NASDAQ:EXAI) shareholders should be happy to see the share price up 27% in the last quarter. But that's not enough to compensate for the decline over the last twelve months. Like a receding glacier in a warming world, the share price has melted 55% in that period. So the bounce should be viewed in that context. You could argue that the sell-off was too severe.
Since shareholders are down over the longer term, lets look at the underlying fundamentals over the that time and see if they've been consistent with returns.
Check out our latest analysis for Exscientia
Because Exscientia made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In just one year Exscientia saw its revenue fall by 9.6%. That looks pretty grim, at a glance. The share price drop of 55% is understandable given the company doesn't have profits to boast of. Having said that, if growth is coming in the future, the stock may have better days ahead. We have a natural aversion to companies that are losing money and shrinking revenue. But perhaps that is being too careful.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
This free interactive report on Exscientia's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
Exscientia shareholders are down 55% for the year, even worse than the market loss of 6.6%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. Putting aside the last twelve months, it's good to see the share price has rebounded by 27%, in the last ninety days. This could just be a bounce because the selling was too aggressive, but fingers crossed it's the start of a new trend. 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. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for Exscientia (of which 1 is significant!) you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.
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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