CTI BioPharma Corp’s (NASDAQ:CTIC): CTI BioPharma Corp., a biopharmaceutical company, focuses on the acquisition, development, and commercialization of novel targeted therapies for blood-related cancers in the United States and internationally. The US$288.17M market-cap posted a loss in its most recent financial year of -US$45.02M and a latest trailing-twelve-month loss of -US$29.29M shrinking the gap between loss and breakeven. As path to profitability is the topic on CTIC’s investors mind, I’ve decided to gauge market sentiment. In this article, I will touch on the expectations for CTIC’s growth and when analysts expect the company to become profitable.
CTIC is bordering on breakeven, according to analysts. They expect the company to post a final loss in 2021, before turning a profit of US$12.30M in 2022. CTIC is therefore projected to breakeven around 4 years from today. How fast will CTIC have to grow each year in order to reach the breakeven point by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 34.57% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, CTIC may become profitable much later than analysts predict.
I’m not going to go through company-specific developments for CTIC given that this is a high-level summary, though, 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 I wrap up, there’s one aspect worth mentioning. CTIC has managed its capital judiciously, with debt making up 18.35% of equity. This means that CTIC has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
There are too many aspects of CTIC to cover in one brief article, but the key fundamentals for the company can all be found in one place – CTIC’s company page on Simply Wall St. I’ve also put together a list of important aspects you should further research:
- Valuation: What is CTIC 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 CTIC 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 CTI BioPharma’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.