Brainstorm Cell Therapeutics Inc.'s (NASDAQ:BCLI) Path To Profitability
Brainstorm Cell Therapeutics Inc. (NASDAQ:BCLI) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Brainstorm Cell Therapeutics Inc., a biotechnology company, engages in the development and commercialization of autologous cellular therapies for the treatment of neurodegenerative diseases. The US$54m market-cap company’s loss lessened since it announced a US$24m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$22m, as it approaches breakeven. The most pressing concern for investors is Brainstorm Cell Therapeutics' 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.
See our latest analysis for Brainstorm Cell Therapeutics
Consensus from 2 of the American Biotechs analysts is that Brainstorm Cell Therapeutics is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of US$54m in 2025. Therefore, the company is expected to breakeven roughly 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 56% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Brainstorm Cell Therapeutics' growth isn’t the focus of this broad overview, 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.
Before we wrap up, there’s one issue worth mentioning. Brainstorm Cell Therapeutics currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.
Next Steps:
There are too many aspects of Brainstorm Cell Therapeutics to cover in one brief article, but the key fundamentals for the company can all be found in one place – Brainstorm Cell Therapeutics' company page on Simply Wall St. We've also compiled a list of important aspects you should further research:
Historical Track Record: What has Brainstorm Cell Therapeutics' 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 Brainstorm Cell Therapeutics' 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.
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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.
