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Burning Rock Biotech (NASDAQ:BNR) shareholders have endured a 84% loss from investing in the stock a year ago

·3-min read

Even the best investor on earth makes unsuccessful investments. But it should be a priority to avoid stomach churning catastrophes, wherever possible. It must have been painful to be a Burning Rock Biotech Limited (NASDAQ:BNR) shareholder over the last year, since the stock price plummeted 84% in that time. A loss like this is a stark reminder that portfolio diversification is important. We wouldn't rush to judgement on Burning Rock Biotech because we don't have a long term history to look at. On the other hand the share price has bounced 7.5% over the last week. While a drop like that is definitely a body blow, money isn't as important as health and happiness.

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.

See our latest analysis for Burning Rock Biotech

Because Burning Rock Biotech 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last year Burning Rock Biotech saw its revenue grow by 14%. That's definitely a respectable growth rate. However, it seems like the market wanted more, since the share price is down 84%. It could be that the losses are too much for investors to handle without losing their nerve. 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 how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

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

If you are thinking of buying or selling Burning Rock Biotech stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Burning Rock Biotech shareholders are down 84% for the year, even worse than the market loss of 12%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. The share price decline has continued throughout the most recent three months, down 7.7%, suggesting an absence of enthusiasm from investors. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. It's always interesting to track share price performance over the longer term. But to understand Burning Rock Biotech better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Burning Rock Biotech you should know about.

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 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.

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