Yahoo Finance Krystal Biotech, Inc. (NASDAQ:KRYS): When Will It Breakeven?
Krystal Biotech, Inc. (NASDAQ:KRYS) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Krystal Biotech, Inc., a biotechnology company, develops and commercializes genetic medicines for patients with rare diseases in the United States. The US$2.3b market-cap company announced a latest loss of US$140m on 31 December 2022 for its most recent financial year result. The most pressing concern for investors is Krystal Biotech's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
Check out our latest analysis for Krystal Biotech
According to the 7 industry analysts covering Krystal Biotech, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of US$79m in 2025. So, the company is predicted to breakeven approximately 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 63% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Given this is a high-level overview, we won’t go into details of Krystal Biotech's upcoming projects, but, keep in mind that by and large 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.
Before we wrap up, there’s one aspect worth mentioning. Krystal Biotech currently 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 Krystal Biotech 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 Krystal Biotech, take a look at Krystal Biotech's company page on Simply Wall St. We've also put together a list of key factors you should look at:
Valuation: What is Krystal Biotech 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 Krystal Biotech 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 Krystal Biotech’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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