When Will Celsion Corporation (NASDAQ:CLSN) Become Profitable?
Celsion Corporation’s (NASDAQ:CLSN): Celsion Corporation, an oncology drug company, focuses on the development and commercialization of directed chemotherapy, DNA-mediated immunotherapy, and RNA based therapy products for the treatment of cancer. The US$43.80M market-cap company’s loss lessens since it announced a -US$22.05M bottom-line in the full financial year, compared to the latest trailing-twelve-month loss of -US$21.46M, as it approaches breakeven. As path to profitability is the topic on CLSN’s investors mind, I’ve decided to gauge market sentiment. In this article, I will touch on the expectations for CLSN’s growth and when analysts expect the company to become profitable.
Check out our latest analysis for Celsion
Expectation from analysts is CLSN is on the verge of breakeven. They anticipate the company to incur a final loss in 2020, before generating positive profits of US$14.02M in 2021. CLSN is therefore projected to breakeven around 3 years from today. In order to meet this breakeven date, I calculated the rate at which CLSN must grow year-on-year. It turns out an average annual growth rate of 44.03% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, CLSN may become profitable much later than analysts predict.
Given this is a high-level overview, I won’t go into detail the detail of CLSN’s upcoming projects, though, keep in mind that typically 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.
One thing I’d like to point out is that CLSN has no debt on its balance sheet, which is quite unusual for a cash-burning biotech, which typically has high debt relative to its equity. This means that CLSN has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of CLSN to cover in one brief article, but the key fundamentals for the company can all be found in one place – CLSN’s company page on Simply Wall St. I’ve also compiled a list of relevant aspects you should further research:
Historical Track Record: What has CLSN’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 Celsion’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.
