Lyell Immunopharma (NASDAQ:LYEL) investors are sitting on a loss of 63% if they invested a year ago

The nature of investing is that you win some, and you lose some. And unfortunately for Lyell Immunopharma, Inc. (NASDAQ:LYEL) shareholders, the stock is a lot lower today than it was a year ago. In that relatively short period, the share price has plunged 63%. Because Lyell Immunopharma hasn't been listed for many years, the market is still learning about how the business performs. Furthermore, it's down 52% in about a quarter. That's not much fun for holders.

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 Lyell Immunopharma

Because Lyell Immunopharma 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. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Lyell Immunopharma grew its revenue by 286% over the last year. That's well above most other pre-profit companies. In contrast the share price is down 63% 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. We'd definitely consider it a positive if the company is trending towards profitability. If you can see that happening, then perhaps consider adding this stock to your watchlist.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

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

A Different Perspective

We doubt Lyell Immunopharma shareholders are happy with the loss of 63% over twelve months. That falls short of the market, which lost 22%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. With the stock down 52% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. 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 - Lyell Immunopharma has 4 warning signs (and 1 which is a bit unpleasant) we think you should know about.

We will like Lyell Immunopharma 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.

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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 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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