U.S. markets open in 6 hours 43 minutes
  • S&P Futures

    3,664.25
    -3.00 (-0.08%)
     
  • Dow Futures

    29,851.00
    -17.00 (-0.06%)
     
  • Nasdaq Futures

    12,468.00
    +13.75 (+0.11%)
     
  • Russell 2000 Futures

    1,835.10
    -2.40 (-0.13%)
     
  • Crude Oil

    45.21
    -0.07 (-0.15%)
     
  • Gold

    1,841.30
    +11.10 (+0.61%)
     
  • Silver

    24.25
    +0.17 (+0.73%)
     
  • EUR/USD

    1.2129
    +0.0013 (+0.11%)
     
  • 10-Yr Bond

    0.9480
    0.0000 (0.00%)
     
  • Vix

    21.17
    +0.40 (+1.93%)
     
  • GBP/USD

    1.3383
    +0.0007 (+0.05%)
     
  • USD/JPY

    104.3690
    -0.0550 (-0.05%)
     
  • BTC-USD

    19,193.24
    +111.89 (+0.59%)
     
  • CMC Crypto 200

    376.08
    +11.16 (+3.06%)
     
  • FTSE 100

    6,463.39
    +78.66 (+1.23%)
     
  • Nikkei 225

    26,809.37
    +8.39 (+0.03%)
     

When Will Chiasma, Inc. (NASDAQ:CHMA) Breakeven?

Simply Wall St
·3 min read

Chiasma, Inc. (NASDAQ:CHMA) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Chiasma, Inc., a clinical late-stage biopharmaceutical company, focuses on developing oral medications using transient permeability enhancer technology platform for the treatment of rare and serious chronic disease worldwide. The company’s loss has recently broadened since it announced a US$36m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$67m, moving it further away from breakeven. As path to profitability is the topic on Chiasma's investors mind, we've decided to gauge market sentiment. 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 Chiasma

Consensus from 5 of the American Pharmaceuticals analysts is that Chiasma is on the verge of breakeven. They expect the company to post a final loss in 2022, before turning a profit of US$19m in 2023. So, the company is predicted to breakeven approximately 3 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 66%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

earnings-per-share-growth
earnings-per-share-growth

Underlying developments driving Chiasma's growth isn’t the focus of this broad overview, but, bear in mind that by and large a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business 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 judiciously, with debt making up 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 Chiasma to cover in one brief article, but the key fundamentals for the company can all be found in one place – Chiasma's company page on Simply Wall St. We've also put together a list of important aspects you should look at:

  1. Valuation: What is Chiasma 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 Chiasma is currently mispriced by the market.

  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Chiasma’s board and the CEO’s background.

  3. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.