Investment

Those who invested in Kuros Biosciences (VTX:KURN) a year ago are up 383%

While some are satisfied with an index fund, active investors aim to find truly magnificent investments on the stock market. When an investor finds a multi-bagger (a stock that goes up over 200%), it makes a big difference to their portfolio. For example, Kuros Biosciences AG (VTX:KURN) has generated a beautiful 383% return in just a single year. Also pleasing for shareholders was the 30% gain in the last three months. Looking back further, the stock price is 246% higher than it was three years ago.

So let’s assess the underlying fundamentals over the last 1 year and see if they’ve moved in lock-step with shareholder returns.

View our latest analysis for Kuros Biosciences

Kuros Biosciences wasn’t profitable in the last twelve months, it is unlikely we’ll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn’t make profits, we’d generally hope to see good revenue growth. That’s because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Kuros Biosciences grew its revenue by 87% last year. That’s stonking growth even when compared to other loss-making stocks. But the share price has really rocketed in response gaining 383% as previously mentioned. Even the most bullish shareholders might be thinking that the share price might drop back a bit, after a gain like that. But if the share price does moderate a bit, there might be an opportunity for high growth investors.

The company’s revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

earnings-and-revenue-growthearnings-and-revenue-growth

earnings-and-revenue-growth

This free interactive report on Kuros Biosciences’ balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It’s nice to see that Kuros Biosciences shareholders have received a total shareholder return of 383% over the last year. That’s better than the annualised return of 25% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. 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 example, we’ve discovered 2 warning signs for Kuros Biosciences that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Swiss 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.

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