Cellectis SA.’s (NASDAQ:CLLS): Cellectis S.A., a gene-editing company, develops and sells immuno-oncology products based on gene-edited T-cells that express chimeric antigen receptors to target and eradicate cancer in France. The company’s loss has recently broadened since it announced a -US$64.16M loss in the full financial year, compared to the latest trailing-twelve-month loss of -US$90.19M, moving it further away from breakeven. As path to profitability is the topic on CLLS’s investors mind, I’ve decided to gauge market sentiment. In this article, I will touch on the expectations for CLLS’s growth and when analysts expect the company to become profitable.
According to the industry analysts covering CLLS, breakeven is near. They anticipate the company to incur a final loss in 2019, before generating positive profits of US$85.70M in 2020. CLLS is therefore projected to breakeven around 2 years from today. How fast will CLLS have to grow each year in order to reach the breakeven point by 2020? Working backwards from analyst estimates, it turns out that they expect the company to grow 53.30% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, CLLS may become profitable much later than analysts predict.
Given this is a high-level overview, I won’t go into detail the detail of CLLS’s upcoming projects, however, keep in mind that generally biotechs, depending on the stage of product development, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.
Before I wrap up, there’s one aspect worth mentioning. CLLS has managed its capital prudently, with debt making up 0.015% of equity. This means that CLLS 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 CLLS to cover in one brief article, but the key fundamentals for the company can all be found in one place – CLLS’s company page on Simply Wall St. I’ve also compiled a list of relevant factors you should look at:
- Historical Track Record: What has CLLS’s 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 Cellectis’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.