When Will Selecta Biosciences Inc (NASDAQ:SELB) Breakeven?
Selecta Biosciences Inc’s (NASDAQ:SELB): Selecta Biosciences, Inc., a clinical-stage biopharmaceutical company, researches and develops nanoparticle immunomodulatory drugs for the treatment and prevention of human diseases. The company’s loss has recently broadened since it announced a -US$40.78M loss in the full financial year, compared to the latest trailing-twelve-month loss of -US$59.86M, moving it further away from breakeven. The most pressing concern for investors is SELB’s path to profitability – when will it breakeven? I’ve put together a brief outline of industry analyst expectations for SELB, its year of breakeven and its implied growth rate.
View our latest analysis for Selecta Biosciences
According to the industry analysts covering SELB, breakeven is near. They anticipate the company to incur a final loss in 2021, before generating positive profits of US$64.49M in 2022. So, SELB is predicted to breakeven approximately 4 years from today. In order to meet this breakeven date, I calculated the rate at which SELB must grow year-on-year. It turns out an average annual growth rate of 31.22% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, I won’t go into detail the detail of SELB’s upcoming projects, though, bear in mind that typically biotechs, depending on the stage of product development, have irregular periods of cash flow. 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. SELB has managed its capital prudently, with debt making up 32.20% of equity. This means that SELB 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 key fundamentals of SELB which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at SELB, take a look at SELB’s company page on Simply Wall St. I’ve also compiled a list of essential factors you should look at:
Historical Track Record: What has SELB’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 Selecta Biosciences’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.
