Introducing Aerpio Pharmaceuticals (NASDAQ:ARPO), The Stock That Zoomed 214% In The Last Year

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But if you pick the right business to buy shares in, you can make more than you can lose. For example, theAerpio Pharmaceuticals, Inc.(NASDAQ:ARPO) share price has soared 214% return in just a single year. Better yet, the share price has risen 29% in the last week. The company reported its financial results recently; you can catch up on the latest numbers by reading our company report. On the other hand, longer term shareholders have had a tougher run, with the stock falling 66% in three years.

See our latest analysis for Aerpio Pharmaceuticals

Aerpio Pharmaceuticals 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.

Over the last twelve months, Aerpio Pharmaceuticals' revenue grew by 26,271%. That's a head and shoulders above most loss-making companies. And the share price has responded, gaining 214% as we previously mentioned. It's great to see strong revenue growth, but the question is whether it can be sustained. Given the positive sentiment around the stock we're cautious, but there's no doubt its worth watching.

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

NasdaqCM:ARPO Earnings and Revenue Growth November 15th 2020

You can see how its balance sheet has strengthened (or weakened) over time in thisfreeinteractive graphic.A Different Perspective

Pleasingly, Aerpio Pharmaceuticals' total shareholder return last year was 214%. This recent result is much better than the 18% drop suffered by shareholders each year (on average) over the last three. It could well be that the business has turned around -- or else regained the confidence of investors. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Like risks, for instance. Every company has them, and we've spotted5 warning signs for Aerpio Pharmaceuticals(of which 1 makes us a bit uncomfortable!) you should know about.

If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).

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.

Have feedback on this article? Concerned about the content?Get in touchwith us directly.Alternatively, email editorial-team@simplywallst.com.