Long-established in the Drug Manufacturers industry, Deciphera Pharmaceuticals Inc (DCPH, Financial) has enjoyed a stellar reputation. However, it has recently witnessed a daily loss of 2.19%, juxtaposed with a three-month change of -12.05%. Fresh insights from the GuruFocus Score Rating hint at potential headwinds. Notably, its diminished rankings in financial strength, growth, and valuation suggest that the company might not live up to its historical performance. Join us as we dive deep into these pivotal metrics to unravel the evolving narrative of Deciphera Pharmaceuticals Inc.
Understanding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 7/10
- Profitability rank: 1/10
- Growth rank: 0/10
- GF Value rank: 7/10
- Momentum rank: 6/10
Based on the above method, GuruFocus assigned Deciphera Pharmaceuticals Inc the GF Score of 58 out of 100, which signals poor future outperformance potential.
Deciphera Pharmaceuticals Inc: A Snapshot
Deciphera Pharmaceuticals Inc is a biotechnology company, which develops and manufactures kinase-inhibiting drugs for the treatment of cancers and immunological diseases. It holds a diverse pipeline of drug candidates that includes three clinical-stage and two research-stage programs. Its lead drug candidate DCC-2618 is designed to inhibit the full spectrum of mutant or amplified KIT and Pdgfra kinases that drive cancers such as gastrointestinal stromal tumors, advanced systemic mastocytosis, gliomas, and other solid tumors. In addition, it is also developing two other clinical-stage drug candidates, DCC-3014 and Rebastinib. Geographically all the operations function through the region of the United States.
Profitability Concerns
Deciphera Pharmaceuticals Inc's low Profitability rank can also raise warning signals. The company's Operating Margin has declined over the past five years ((-1,363,231.00%)), as shown by the following data: 2018: 0; 2019: -802.90; 2020: -644.36; 2021: -312.10; 2022: -136.32; .
Growth Prospects
A lack of significant growth is another area where Deciphera Pharmaceuticals Inc seems to falter, as evidenced by the company's low Growth rank.
Conclusion
Given the company's financial strength, profitability, and growth metrics, the GuruFocus Score Rating highlights the firm's unparalleled position for potential underperformance. While Deciphera Pharmaceuticals Inc has a history of success, these indicators suggest that it may struggle to maintain this trajectory in the future.
GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen
