Immutep Limited (ASX:IMM) Is Expected To Breakeven In The Near Future
We feel now is a pretty good time to analyse Immutep Limited's (ASX:IMM) business as it appears the company may be on the cusp of a considerable accomplishment. Immutep Limited, a biotech company, engages in the research and development of pharmaceutical product candidates. The company’s loss has recently broadened since it announced a AU$13m loss in the full financial year, compared to the latest trailing-twelve-month loss of AU$27m, moving it further away from breakeven. Many investors are wondering about the rate at which Immutep will turn a profit, with the big question being “when will the company breakeven?” 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 Immutep
Immutep is bordering on breakeven, according to the 3 Australian Biotechs analysts. They expect the company to post a final loss in 2023, before turning a profit of AU$47m in 2024. So, the company is predicted to breakeven approximately 3 years from today. 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 87% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for Immutep given that this is a high-level summary, but, bear in mind that generally a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.
One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 16% 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:
This article is not intended to be a comprehensive analysis on Immutep, so if you are interested in understanding the company at a deeper level, take a look at Immutep's company page on Simply Wall St. We've also compiled a list of pertinent factors you should further research:
Valuation: What is Immutep 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 Immutep 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 Immutep’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.
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.
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