NASDAQ:OCUL): Ocular Therapeutix, Inc., a biopharmaceutical company, focuses on the formulation, development, and commercialization of therapies for diseases and conditions of the eye using its bioresorbable hydrogel platform technology. With the latest financial year loss of US$86.4m and a trailing-twelve month of US$90.8m, the US$527m market-cap amplifies its loss by moving further away from its breakeven target. As path to profitability is the topic on OCUL’s investors mind, I’ve decided to gauge market sentiment. In this article, I will touch on the expectations for OCUL’s growth and when analysts expect the company to become profitable.” data-reactid=”28″>Ocular Therapeutix, Inc.’s (NASDAQ:OCUL): Ocular Therapeutix, Inc., a biopharmaceutical company, focuses on the formulation, development, and commercialization of therapies for diseases and conditions of the eye using its bioresorbable hydrogel platform technology. With the latest financial year loss of US$86.4m and a trailing-twelve month of US$90.8m, the US$527m market-cap amplifies its loss by moving further away from its breakeven target. As path to profitability is the topic on OCUL’s investors mind, I’ve decided to gauge market sentiment. In this article, I will touch on the expectations for OCUL’s growth and when analysts expect the company to become profitable.
See our latest analysis for Ocular Therapeutix ” data-reactid=”29″>See our latest analysis for Ocular Therapeutix
According to the 6 industry analysts covering OCUL, the consensus is breakeven is near. They expect the company to post a final loss in 2021, before turning a profit of US$4.2m in 2022. OCUL is therefore projected to breakeven around 2 years from today. In order to meet this breakeven date, I calculated the rate at which OCUL must grow year-on-year. It turns out an average annual growth rate of 68% 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 details of OCUL’s upcoming projects, though, take into account that by and large a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business 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 issue worth mentioning. OCUL currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. Oftentimes, losses exist only on paper but other times, it can be a red flag.
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OCUL’s company page on Simply Wall St. I’ve also put together a list of relevant factors you should look at:” data-reactid=”50″>This article is not intended to be a comprehensive analysis on OCUL, so if you are interested in understanding the company at a deeper level, take a look at OCUL’s company page on Simply Wall St. I’ve also put together a list of relevant factors you should look at:
- Valuation: What is OCUL 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 OCUL 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 Ocular Therapeutix’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.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”55″>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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