Cocrystal Pharma, Inc. (NASDAQ:COCP) shareholders might be concerned after seeing the share price drop 25% in the last month. While that might be a setback, it doesn’t negate the nice returns received over the last twelve months. After all, the share price is up a market-beating 94% in that time.
Because Cocrystal Pharma 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. 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.
In the last year Cocrystal Pharma saw its revenue shrink by 69%. Despite the lack of revenue growth, the stock has returned a solid 94% the last twelve months. We can correlate the share price rise with revenue or profit growth, but it seems the market had previously expected weaker results, and sentiment around the stock is improving.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
We’re pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. This free report showing analyst forecasts should help you form a view on Cocrystal Pharma
A Different Perspective
It’s good to see that Cocrystal Pharma has rewarded shareholders with a total shareholder return of 94% in the last twelve months. There’s no doubt those recent returns are much better than the TSR loss of 14% per year over five years. This makes us a little wary, but the business might have turned around its fortunes. 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 instance, we’ve identified 4 warning signs for Cocrystal Pharma 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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