Yahoo Finance Aptose Biosciences Inc’s (TSE:APS) Profit Outlook
Aptose Biosciences Inc’s (TSX:APS): Aptose Biosciences Inc., a clinical-stage biotechnology company, discovers and develops personalized therapies addressing unmet medical needs in oncology in Canada. The company’s loss has recently broadened since it announced a -US$11.66M loss in the full financial year, compared to the latest trailing-twelve-month loss of -US$15.18M, moving it further away from breakeven. The most pressing concern for investors is APS’s path to profitability – when will it breakeven? Below I will provide a high-level summary of the industry analysts’ expectations for APS.
View our latest analysis for Aptose Biosciences
Expectation from analysts is APS is on the verge of breakeven. They expect the company to post a final loss in 2021, before turning a profit of US$22.19M in 2022. APS is therefore projected to breakeven around 4 years from today. What rate will APS 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 35.39%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving APS’s growth isn’t the focus of this broad overview, but, bear in mind that generally biotechs, depending on the stage of product development, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.
Before I wrap up, there’s one aspect worth mentioning. APS currently has no debt on its balance sheet, which is rare for a loss-making biotech, which usually has a high level of debt relative to its equity. APS 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:
This article is not intended to be a comprehensive analysis on APS, so if you are interested in understanding the company at a deeper level, take a look at APS’s company page on Simply Wall St. I’ve also compiled a list of pertinent factors you should further research:
Historical Track Record: What has APS’s 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 Aptose Biosciences’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.