Breakeven On The Horizon For Navidea Biopharmaceuticals, Inc. (NYSEMKT:NAVB)
We feel now is a pretty good time to analyse Navidea Biopharmaceuticals, Inc.'s (NYSEMKT:NAVB) business as it appears the company may be on the cusp of a considerable accomplishment. Navidea Biopharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of precision immunodiagnostic agents and immunotherapeutics. The US$88m market-cap company posted a loss in its most recent financial year of US$10.9m and a latest trailing-twelve-month loss of US$10.9m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which Navidea Biopharmaceuticals will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
View our latest analysis for Navidea Biopharmaceuticals
Consensus from 2 of the American Biotechs analysts is that Navidea Biopharmaceuticals is on the verge of breakeven. They expect the company to post a final loss in 2022, before turning a profit of US$29m in 2023. The company is therefore projected to breakeven around 3 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 77% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving Navidea Biopharmaceuticals' growth isn’t the focus of this broad overview, though, bear in mind that generally a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 22% 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 too many aspects of Navidea Biopharmaceuticals to cover in one brief article, but the key fundamentals for the company can all be found in one place – Navidea Biopharmaceuticals' company page on Simply Wall St. We've also compiled a list of relevant factors you should look at:
Historical Track Record: What has Navidea Biopharmaceuticals' 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 Navidea Biopharmaceuticals' 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.
This article by Simply Wall St is general in nature. 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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