Yahoo Finance When Will Anatara Lifesciences Limited (ASX:ANR) Become Profitable?
Anatara Lifesciences Limited’s (ASX:ANR): Anatara Lifesciences Limited engages in the development of non-antibiotic oral solutions for gastro intestinal diseases in animals and humans in Australia. The AU$41.51M market-cap posted a loss in its most recent financial year of -AU$1.71M and a latest trailing-twelve-month loss of -AU$3.01M leading to an even wider gap between loss and breakeven. As path to profitability is the topic on ANR’s investors mind, I’ve decided to gauge market sentiment. Below I will provide a high-level summary of the industry analysts’ expectations for ANR.
Check out our latest analysis for Anatara Lifesciences
ANR is bordering on breakeven, according to analysts. They anticipate the company to incur a final loss in 2018, before generating positive profits of AU$2.61M in 2019. ANR is therefore projected to breakeven around a few months from now. What rate will ANR have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 58.69%, which signals high confidence from analysts. If this rate turns out to be too aggressive, ANR may become profitable much later than analysts predict.
Given this is a high-level overview, I won’t go into detail the detail of ANR’s upcoming projects, but, keep in mind that typically biotechs, depending on the stage of product development, have irregular periods of cash flow. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing I’d like to point out is that ANR has no debt on its balance sheet, which is quite unusual for a cash-burning biotech, which typically has high debt relative to its equity. This means that ANR has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
Next Steps:
There are key fundamentals of ANR which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at ANR, take a look at ANR’s company page on Simply Wall St. I’ve also compiled a list of essential aspects you should further research:
Valuation: What is ANR 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 ANR 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 Anatara Lifesciences’s board and the CEO’s back ground.
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.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
