Yahoo Finance Agios Pharmaceuticals, Inc. (NASDAQ:AGIO) Is About To Turn The Corner
Agios Pharmaceuticals, Inc. (NASDAQ:AGIO) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Agios Pharmaceuticals, Inc., a biopharmaceutical company, engages in the discovery and development of medicines in the field of cellular metabolism and adjacent areas of biology. With the latest financial year loss of US$327m and a trailing-twelve-month loss of US$334m, the US$3.9b market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which Agios Pharmaceuticals will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.
See our latest analysis for Agios Pharmaceuticals
Consensus from 8 of the American Biotechs analysts is that Agios Pharmaceuticals is on the verge of breakeven. They expect the company to post a final loss in 2020, before turning a profit of US$1.6b in 2021. So, the company is predicted to breakeven approximately 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of -47% is expected,
Given this is a high-level overview, we won’t go into details of Agios Pharmaceuticals' upcoming projects, however, take into account that generally a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. So, periods of lower growth in the upcoming years is not out of the ordinary, particularly when a company is in a period of investment.
One thing we would like to bring into light with Agios Pharmaceuticals is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Agios Pharmaceuticals' case is 65%. Note that a higher debt obligation increases the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of Agios Pharmaceuticals to cover in one brief article, but the key fundamentals for the company can all be found in one place – Agios Pharmaceuticals' company page on Simply Wall St. We've also put together a list of pertinent aspects you should look at:
Historical Track Record: What has Agios Pharmaceuticals' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Agios Pharmaceuticals' 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. 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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