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ABIVAX Société Anonyme (EPA:ABVX) shareholders might be concerned after seeing the share price drop 13% in the last month. But in three years the returns have been great. In fact, the share price is up a full 110% compared to three years ago. So the recent fall in the share price should be viewed in that context. The thing to consider is whether the underlying business is doing well enough to support the current price.
Check out our latest analysis for ABIVAX Société Anonyme
We don't think ABIVAX Société Anonyme's revenue of €815,000 is enough to establish significant demand. So it seems shareholders are too busy dreaming about the progress to come than dwelling on the current (lack of) revenue. For example, they may be hoping that ABIVAX Société Anonyme comes up with a great new product, before it runs out of money.
Companies that lack both meaningful revenue and profits are usually considered high risk. You should be aware that there is always a chance that this sort of company will need to issue more shares to raise money to continue pursuing its business plan. While some such companies go on to make revenue, profits, and generate value, others get hyped up by hopeful naifs before eventually going bankrupt. Of course, if you time it right, high risk investments like this can really pay off, as ABIVAX Société Anonyme investors might know.
ABIVAX Société Anonyme had liabilities exceeding cash by €6,392,000 when it last reported in December 2018, according to our data. That puts it in the highest risk category, according to our analysis. So we're surprised to see the stock up 28% per year, over 3 years, but we're happy for holders. It's clear more than a few people believe in the potential. The image below shows how ABIVAX Société Anonyme's balance sheet has changed over time; if you want to see the precise values, simply click on the image. The image below shows how ABIVAX Société Anonyme's balance sheet has changed over time; if you want to see the precise values, simply click on the image.
In reality it's hard to have much certainty when valuing a business that has neither revenue or profit. Given that situation, many of the best investors like to check if insiders have been buying shares. It's often positive if so, assuming the buying is sustained and meaningful. You can click here to see if there are insiders buying.
A Different Perspective
It's nice to see that ABIVAX Société Anonyme shareholders have gained 24% (in total) over the last year. That falls short of the 28% it has made, for shareholders, each year, over three years. You could get a better understanding of ABIVAX Société Anonyme's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.