Vyant Bio, Inc. (NASDAQ:VYNT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Vyant Bio, Inc. operates as a biotechnology drug discovery company. The US$66m market-cap company posted a loss in its most recent financial year of US$8.7m and a latest trailing-twelve-month loss of US$17m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is Vyant Bio's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Expectations from some of the American Biotechs analysts is that Vyant Bio is on the verge of breakeven. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$56m in 2023. The company is therefore projected to breakeven around 2 years 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 120% 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, we won’t go into details of Vyant Bio's upcoming projects, but, bear in mind that generally biotechs, depending on the stage of product development, have irregular periods of cash flow. 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 0.09% 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.
There are key fundamentals of Vyant Bio 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 Vyant Bio, take a look at Vyant Bio's company page on Simply Wall St. We've also compiled a list of essential aspects you should look at:
Historical Track Record: What has Vyant Bio'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 Vyant Bio'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. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.