Further weakness as Myriad Genetics (NASDAQ:MYGN) drops 5.5% this week, taking five-year losses to 51%

Statistically speaking, long term investing is a profitable endeavour. But along the way some stocks are going to perform badly. For example, after five long years the Myriad Genetics, Inc. (NASDAQ:MYGN) share price is a whole 51% lower. That is extremely sub-optimal, to say the least. And some of the more recent buyers are probably worried, too, with the stock falling 35% in the last year. Furthermore, it’s down 20% in about a quarter. That’s not much fun for holders.

After losing 5.5% this past week, it’s worth investigating the company’s fundamentals to see what we can infer from past performance.

View our latest analysis for Myriad Genetics

Myriad Genetics isn’t currently profitable, so most analysts would look to revenue growth to get an idea of ​​how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Over half a decade Myriad Genetics reduced its trailing twelve month revenue by 4.7% for each year. While far from catastrophic that is not good. With neither profit nor revenue growth, the loss of 9% per year doesn’t really surprise us. We don’t think anyone is rushing to buy this stock. Not that many investors like to invest in companies that are losing money and not growing revenue.

You can see below how earnings and revenue have changed over time (discover the exact values ​​by clicking on the image).

earnings-and-revenue-growth

earnings-and-revenue-growth

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

A Different Perspective

While the broader market lost about 19% in the twelve months, Myriad Genetics shareholders did even worse, losing 35%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there’s a good opportunity. Unfortunately, last year’s performance may indicate unresolved challenges, given that it was worse than the annualized loss of 9% over the last half decade. We realize that Baron Rothschild has said investors should “buy when there is blood on the streets”, but we caution that investors should first be sure they are buying a high quality business. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.

If you would prefer to check out another company — one with potentially superior financials — then don’t miss this free list of companies that have proven they can 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.

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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 into account 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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