CRISPR Therapeutics AG :CRSP-US: Earnings Analysis: 2016 By the Numbers : March 20, 2017

CRISPR Therapeutics AG reports financial results for the year ended December 31, 2016.

We analyze the earnings along side the following peers of CRISPR Therapeutics AG – PDL BioPharma, Inc. and Bioblast Pharma Ltd. (PDLI-US and ORPN-US) that have also reported for this period.

Highlights

  • Year-on-year change in operating cash flow of -193.07% is about the same as the change in earnings, likely no significant movement in accruals or reserves.
  • Earnings growth from operating margin improvements as well as one-time items.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income growth:

2016 2015 2014 N/A N/A
Relevant Numbers (Annual)
Revenues 5.16 0.25 0 N/A N/A
Revenue Growth (YOY) N/A N/A N/A N/A N/A
Earnings -23.18 -25.5 -6.26 N/A N/A
Earnings Growth (YOY) 9.12 -307.14 N/A N/A N/A
Net Margin -448.82 -10325.1 N/A N/A N/A
EPS -1.89 -0.65 -1.76 N/A N/A
Return on Equity -17.28 -147.02 N/A N/A N/A
Return on Assets -9.19 -31.69 -410.22 N/A N/A

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Cash Versus Earnings – Sustainable Performance?

It is important to examine a company�s cash versus earnings numbers to gauge whether its performance is sustainable.

CRSP-US‘s change in operating cash flow of -193.07% compared to the same period last year is about the same as its change in earnings this period. Additionally, this change in operating cash flow is about average among its peer group. This suggests that the company did not use accruals or reserves to manage earnings this period, and that, all else being equal, the earnings number is sustainable.

Operating Cash Flow Growth Versus Earnings Growth

Quadrant label definitions. Hover to know more

Cash Flow based Earnings, Likely Non-cash Earnings, Low Cash Flow Base, Likely Undeclared Earnings

Margins

The company’s earnings growth has also been influenced by the following factors: (1) Improvements in operating (EBIT) margins from -10,416.60% to -1,319.33% and (2) one-time items. The company’s pretax margins are now -439.93% compared to -10,453.85% for the same period last year.

EBIT Margin Versus PreTax Margin

Quadrant label definitions. Hover to know more

Operation driven Earnings, One-time Favorables, Low Earnings Base, One-time Unfavorables

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Company Profile

CRISPR Therapeutics AG develops gene-based medicines for patients with serious diseases. Its therapeutic molecular level using the breakthrough genome-editing technology called CRISPR-Cas9. The company was founded by Rodger Novak, Emmanuelle Charpentier and Shaun Patrick Foy in 2014 and is headquartered in Basel, Switzerland.

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