It might be of some concern to shareholders to see the Catalyst Biosciences, Inc. (NASDAQ:CBIO) share price down 24% in the last month. But at least the stock is up over the last three years. Arguably you'd have been better off buying an index fund, because the gain of 34% in three years isn't amazing.

Check out our latest analysis for Catalyst Biosciences

Because Catalyst Biosciences 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. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Catalyst Biosciences's revenue trended up 137% each year over three years. That's much better than most loss-making companies. The share price rise of 10% per year throughout that time is nice to see, and given the revenue growth, that gain seems somewhat justified. So now might be the perfect time to put Catalyst Biosciences on your radar. If the company is trending towards profitability then it could be very interesting.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

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

A Different Perspective

The last twelve months weren't great for Catalyst Biosciences shares, which cost holders 29%, while the market was up about 9.0%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Investors are up over three years, booking 10% per year, much better than the more recent returns. The recent sell-off could be an opportunity if the business remains sound, so it may be worth checking the fundamental data for signs of a long-term growth trend. 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. Take risks, for example - Catalyst Biosciences has 4 warning signs (and 2 which are a bit concerning) we think you should know about.

We will like Catalyst Biosciences better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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.

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