Senti Biosciences, Inc.(NASDAQ:SNTI) has rebounded strongly over the last week, with the share price soaring 68%. But that's not enough to compensate for the decline over the last twelve months. During that time the share price has sank like a stone, descending 68%. The share price recovery is not so impressive when you consider the fall. You could argue that the sell-off was too severe.
While the stock has risen 68% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.
Senti Biosciences isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. 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.
Senti Biosciences grew its revenue by 269% over the last year. That's well above most other pre-profit companies. In contrast the share price is down 68% over twelve months. Yes, the market can be a fickle mistress. This could mean hype has come out of the stock because the bottom line is concerning investors. Generally speaking investors would consider a stock like this less risky once it turns a profit. But when do you think that will happen?
You can see below how earnings and revenue have changed over time.
earnings-and-revenue-growth
Thisfreeinteractive report on Senti Biosciences'balance sheet strengthis a great place to start, if you want to investigate the stock further.
A Different Perspective
Senti Biosciences shareholders are down 68% for the year, even worse than the market loss of 11%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. It's worth noting that the last three months did the real damage, with a 68% decline. So it seems like some holders have been dumping the stock of late - and that's not bullish. 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. Like risks, for instance. Every company has them, and we've spotted2 warning signs for Senti Biosciences(of which 1 can't be ignored!) you should know about.
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