Yahoo Finance Acer Therapeutics Inc. (NASDAQ:ACER): Are Analysts Optimistic?
Acer Therapeutics Inc. (NASDAQ:ACER) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Acer Therapeutics Inc., a pharmaceutical company, focuses on the acquisition, development, and commercialization of therapies for serious rare and life-threatening diseases. The US$37m market-cap company’s loss lessened since it announced a US$23m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$17m, as it approaches breakeven. As path to profitability is the topic on Acer Therapeutics' investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
View our latest analysis for Acer Therapeutics
Acer Therapeutics is bordering on breakeven, according to the 2 American Pharmaceuticals analysts. They expect the company to post a final loss in 2022, before turning a profit of US$2.9m in 2023. The company is therefore projected to breakeven around 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 66% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Acer Therapeutics' growth isn’t the focus of this broad overview, however, take into account that typically pharmaceuticals, depending on the stage of product development, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.
One thing we’d like to point out is that Acer Therapeutics has no debt on its balance sheet, which is quite unusual for a cash-burning pharma, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
There are key fundamentals of Acer Therapeutics which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Acer Therapeutics, take a look at Acer Therapeutics' company page on Simply Wall St. We've also put together a list of relevant aspects you should look at:
Valuation: What is Acer Therapeutics worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Acer Therapeutics is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Acer Therapeutics’s board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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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