Kiniksa Pharmaceuticals International, plc (NASDAQ:KNSA) shareholders might be concerned after seeing the share price drop 17% in the last quarter. But don't let that distract from the very nice return generated over three years. In the last three years the share price is up, 83%: better than the market.

After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals.

Because Kiniksa Pharmaceuticals International 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. When a company doesn't make profits, we'd generally hope to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last 3 years Kiniksa Pharmaceuticals International saw its revenue grow at 57% per year. That's much better than most loss-making companies. While the compound gain of 22% per year over three years is pretty good, you might argue it doesn't fully reflect the strong revenue growth. So now might be the perfect time to put Kiniksa Pharmaceuticals International on your radar. If the company is trending towards profitability then it could be very interesting.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

Take a more thorough look at Kiniksa Pharmaceuticals International's financial health with this free report on its balance sheet.

A Different Perspective

Kiniksa Pharmaceuticals International provided a TSR of 6.1% over the last twelve months. But that was short of the market average. If we look back over five years, the returns are even better, coming in at 8% per year for five years. It may well be that this is a business worth popping on the watching, given the continuing positive reception, over time, from the market. 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. For example, we've discovered 1 warning sign for Kiniksa Pharmaceuticals International that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American 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.