Yahoo Finance InflaRx N.V.'s (NASDAQ:IFRX) Profit Outlook
InflaRx N.V. (NASDAQ:IFRX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. InflaRx N.V., a clinical-stage biopharmaceutical company, discovers and develops inhibitors using C5a technology in Germany and the United States. The US$275m market-cap company announced a latest loss of €29m on 31 December 2022 for its most recent financial year result. As path to profitability is the topic on InflaRx's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
See our latest analysis for InflaRx
InflaRx is bordering on breakeven, according to the 5 American Biotechs analysts. They expect the company to post a final loss in 2024, before turning a profit of €37m in 2025. Therefore, the company is expected to breakeven roughly 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 49%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for InflaRx given that this is a high-level summary, though, take into account that typically 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.
One thing we’d like to point out is that InflaRx has no debt on its balance sheet, which is quite unusual for a cash-burning biotech, 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 InflaRx 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 InflaRx, take a look at InflaRx's company page on Simply Wall St. We've also compiled a list of essential factors you should further examine:
Valuation: What is InflaRx 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 InflaRx 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 InflaRx’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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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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