Yahoo Finance The past year for Twist Bioscience (NASDAQ:TWST) investors has not been profitable
Even the best investor on earth makes unsuccessful investments. But it's not unreasonable to try to avoid truly shocking capital losses. We wouldn't blame Twist Bioscience Corporation (NASDAQ:TWST) shareholders if they were still in shock after the stock dropped like a lead balloon, down 72% in just one year. While some investors are willing to stomach this sort of loss, they are usually professionals who spread their bets thinly. On the bright side, the stock is actually up 30% in the last three years. The falls have accelerated recently, with the share price down 28% in the last three months.
Now let's have a look at the company's fundamentals, and see if the long term shareholder return has matched the performance of the underlying business.
Check out our latest analysis for Twist Bioscience
Twist Bioscience 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
Twist Bioscience grew its revenue by 45% over the last year. That's definitely a respectable growth rate. Unfortunately, the market wanted something better, given it sent the share price 72% lower during the year. One fear might be that the company might be losing too much money and will need to raise more. It seems that the market has concerns about the future, because that share price action does not seem to reflect the revenue growth at all.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. So it makes a lot of sense to check out what analysts think Twist Bioscience will earn in the future (free profit forecasts).
A Different Perspective
The last twelve months weren't great for Twist Bioscience shares, which performed worse than the market, costing holders 72%. Meanwhile, the broader market slid about 25%, likely weighing on the stock. Investors are up over three years, booking 9% per year, much better than the more recent returns. 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 Twist Bioscience better, we need to consider many other factors. Case in point: We've spotted 5 warning signs for Twist Bioscience you should be aware of, and 1 of them is concerning.
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 US exchanges.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
