Matinas BioPharma Holdings Inc’s (AMEX:MTNB): Matinas BioPharma Holdings, Inc., a clinical-stage biopharmaceutical company, focuses on identifying and developing antifungal and anti-bacterial therapeutics for the treatment of various infections in the United States. The US$51.40M market-cap company’s loss lessens since it announced a -US$32.84M bottom-line in the full financial year, compared to the latest trailing-twelve-month loss of -US$15.70M, as it approaches breakeven. The most pressing concern for investors is MTNB’s path to profitability – when will it breakeven? In this article, I will touch on the expectations for MTNB’s growth and when analysts expect the company to become profitable.
Expectation from analysts is MTNB is on the verge of breakeven. They expect the company to post a final loss in 2021, before turning a profit of US$136.47M in 2022. MTNB is therefore projected to breakeven around 4 years from today. In order to meet this breakeven date, I calculated the rate at which MTNB must grow year-on-year. It turns out an average annual growth rate of 61.39% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, MTNB may become profitable much later than analysts predict.
Underlying developments driving MTNB’s growth isn’t the focus of this broad overview, but, 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. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before I wrap up, there’s one aspect worth mentioning. MTNB has managed its capital prudently, with debt making up 2.49% of equity. This means that MTNB has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
There are too many aspects of MTNB to cover in one brief article, but the key fundamentals for the company can all be found in one place – MTNB’s company page on Simply Wall St. I’ve also put together a list of essential aspects you should further examine:
- Historical Track Record: What has MTNB’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 Matinas BioPharma Holdings’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.