Some Heat Biologics, Inc. (NASDAQ:HTBX) shareholders are probably rather concerned to see the share price fall 49% over the last three months. On the other hand, over the last twelve months the stock has delivered rather impressive returns. We’re very pleased to report the share price shot up 117% in that time. So some might not be surprised to see the price retrace some. More important, going forward, is how the business itself is going.
Because Heat Biologics 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 it’s hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
Heat Biologics actually shrunk its revenue over the last year, with a reduction of 29%. We’re a little surprised to see the share price pop 117% in the last year. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. It’s quite likely the revenue fall was already priced in, anyway.
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 Heat Biologics shareholders have received a total shareholder return of 117% over one year. Notably the five-year annualised TSR loss of 15% per year compares very unfavourably with the recent share price performance. This makes us a little wary, but the business might have turned around its fortunes. It’s always interesting to track share price performance over the longer term. But to understand Heat Biologics better, we need to consider many other factors. Take risks, for example – Heat Biologics has 4 warning signs (and 1 which can’t be ignored) we think you should know about.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
This article by Simply Wall St is general in nature. 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.