When Will Arcturus Therapeutics Holdings Inc. (NASDAQ:ARCT) Become Profitable?
With the business potentially at an important milestone, we thought we'd take a closer look at Arcturus Therapeutics Holdings Inc.'s (NASDAQ:ARCT) future prospects. Arcturus Therapeutics Holdings Inc., an RNA medicines company, focuses on the development of vaccines for infectious, and liver and respiratory rare diseases in the United States. The US$380m market-cap company’s loss lessened since it announced a US$204m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$165m, as it approaches breakeven. The most pressing concern for investors is Arcturus Therapeutics Holdings' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for Arcturus Therapeutics Holdings
Arcturus Therapeutics Holdings is bordering on breakeven, according to the 10 American Biotechs analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$36m in 2024. Therefore, the company is expected to breakeven roughly 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 71% 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.
Underlying developments driving Arcturus Therapeutics Holdings' growth isn’t the focus of this broad overview, though, keep in mind that typically a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 37% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
There are key fundamentals of Arcturus Therapeutics Holdings 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 Arcturus Therapeutics Holdings, take a look at Arcturus Therapeutics Holdings' company page on Simply Wall St. We've also compiled a list of pertinent aspects you should look at:
Historical Track Record: What has Arcturus Therapeutics Holdings' 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 Arcturus Therapeutics Holdings' 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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