Checkpoint Therapeutics, Inc.'s (NASDAQ:CKPT) Profit Outlook
We feel now is a pretty good time to analyse Checkpoint Therapeutics, Inc.'s (NASDAQ:CKPT) business as it appears the company may be on the cusp of a considerable accomplishment. Checkpoint Therapeutics, Inc., a clinical-stage immunotherapy and targeted oncology company, focuses on the acquisition, development, and commercialization of novel treatments for patients with solid tumor cancers. The US$78m market-cap company posted a loss in its most recent financial year of US$63m and a latest trailing-twelve-month loss of US$54m shrinking the gap between loss and breakeven. As path to profitability is the topic on Checkpoint Therapeutics' investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
Check out our latest analysis for Checkpoint Therapeutics
Checkpoint Therapeutics is bordering on breakeven, according to the 2 American Biotechs analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$146m in 2025. The company is therefore projected to breakeven around 2 years from now. 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 102% 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 Checkpoint Therapeutics' growth isn’t the focus of this broad overview, though, take into account 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, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.
Before we wrap up, there’s one issue worth mentioning. Checkpoint 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 key fundamentals of Checkpoint Therapeutics 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 Checkpoint Therapeutics, take a look at Checkpoint Therapeutics' company page on Simply Wall St. We've also put together a list of essential factors you should further examine:
Valuation: What is Checkpoint Therapeutics worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Checkpoint Therapeutics is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Checkpoint Therapeutics’s 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.
