Dyadic International, Inc.'s (NASDAQ:DYAI) Profit Outlook
With the business potentially at an important milestone, we thought we'd take a closer look at Dyadic International, Inc.'s (NASDAQ:DYAI) future prospects. Dyadic International, Inc., a biotechnology platform company, develops, produces, and sells enzymes and other proteins in the United States. The US$110m market-cap company posted a loss in its most recent financial year of US$9.3m and a latest trailing-twelve-month loss of US$11m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on Dyadic International's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
See our latest analysis for Dyadic International
Dyadic International is bordering on breakeven, according to the 2 American Biotechs analysts. They expect the company to post a final loss in 2022, before turning a profit of US$3.6m in 2023. So, the company is predicted to breakeven just over a year from now. 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 55% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Dyadic International's growth isn’t the focus of this broad overview, though, bear in mind that by and large 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.
Before we wrap up, there’s one aspect worth mentioning. Dyadic International currently has no debt on its balance sheet, which is quite unusual for a cash-burning biotech, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
There are too many aspects of Dyadic International to cover in one brief article, but the key fundamentals for the company can all be found in one place – Dyadic International's company page on Simply Wall St. We've also compiled a list of important aspects you should look at:
Valuation: What is Dyadic International 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 Dyadic International 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 Dyadic International’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.
