When Will Arcturus Therapeutics Holdings Inc. (NASDAQ:ARCT) Turn A Profit?
NASDAQ:ARCT) future prospects. Arcturus Therapeutics Holdings Inc., an RNA medicines company, focuses on the treatment of liver and respiratory care diseases. With the latest financial year loss of US$26.0m and a trailing-twelve-month loss of US$38.5m, the US$1.3b market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is Arcturus Therapeutics Holdings’ path to profitability – when will it breakeven? We’ve put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.” data-reactid=”28″>With the business potentially at an important milestone, we thought we’d take a closer look at Arcturus Therapeutics Holdings Inc.’s (NASDAQ:ARCT) future prospects. Arcturus Therapeutics Holdings Inc., an RNA medicines company, focuses on the treatment of liver and respiratory care diseases. With the latest financial year loss of US$26.0m and a trailing-twelve-month loss of US$38.5m, the US$1.3b market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is Arcturus Therapeutics Holdings’ path to profitability – when will it breakeven? We’ve put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
Check out our latest analysis for Arcturus Therapeutics Holdings ” data-reactid=”29″> Check out our latest analysis for Arcturus Therapeutics Holdings
According to the 9 industry analysts covering Arcturus Therapeutics Holdings, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2020, before generating positive profits of US$11m in 2021. Therefore, the company is expected to breakeven just over a year from today. 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 69% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We’re not going to go through company-specific developments for Arcturus Therapeutics Holdings given that this is a high-level summary, but, keep in mind that by and large a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 16% 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:
Arcturus Therapeutics Holdings’ company page on Simply Wall St. We’ve also put together a list of relevant aspects you should further research:” data-reactid=”50″>There are key fundamentals of Arcturus Therapeutics Holdings 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 Arcturus Therapeutics Holdings, take a look at Arcturus Therapeutics Holdings’ company page on Simply Wall St. We’ve also put together a list of relevant aspects you should further research:
- Valuation: What is Arcturus Therapeutics Holdings 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 Arcturus Therapeutics Holdings 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 Arcturus Therapeutics Holdings’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.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected].
