uniQure N.V. (NASDAQ:QURE) On The Verge Of Breaking Even
uniQure N.V. (NASDAQ:QURE) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. uniQure N.V., a gene therapy company, engages in the development of treatments for patients suffering from genetic and other devastating diseases. The US$1.3b market-cap company posted a loss in its most recent financial year of US$125m and a latest trailing-twelve-month loss of US$139m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on uniQure'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.
Check out our latest analysis for uniQure
Consensus from 17 of the American Biotechs analysts is that uniQure is on the verge of breakeven. They expect the company to post a final loss in 2020, before turning a profit of US$137m in 2021. Therefore, the company is expected to breakeven roughly a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow -33% year-on-year, on average,
Underlying developments driving uniQure's growth isn’t the focus of this broad overview, however, keep in mind that by and large biotechs, depending on the stage of product development, have irregular periods of cash flow. This means that a low or volatile growth rate in the near future is not unusual, especially if the company is currently in an investment period.
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 31% 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 key fundamentals of uniQure which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at uniQure, take a look at uniQure's company page on Simply Wall St. We've also compiled a list of important factors you should look at:
Valuation: What is uniQure 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 uniQure 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 uniQure’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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