lower schreef op 9 maart 2018 09:52:
Kiadis Pharma NV.’s (AMS:KDS) Shift From Loss To Profit
finance.yahoo.com/news/kiadis-pharma-...adis Pharma NV.’s (ENXTAM:KDS): Kiadis Pharma N.V., a clinical stage biopharmaceutical company, focuses on the research and development of cell-based immunotherapy products for the treatment of blood cancers and inherited blood disorders in the Netherlands. With the latest financial year loss of -€14.79M and a trailing-twelve month of -€16.87M, the €188.78M market-cap amplifies its loss by moving further away from its breakeven target. Many investors are wondering the rate at which KDS will turn a profit, with the big question being “when will the company breakeven?” Below I will provide a high-level summary of the industry analysts’ expectations for KDS.
See our latest analysis for Kiadis Pharma
According to the industry analysts covering KDS, breakeven is near. They anticipate the company to incur a final loss in 2019, before generating positive profits of €10.34M in 2020. Therefore, KDS is expected to breakeven roughly 2 years from today. How fast will KDS have to grow each year in order to reach the breakeven point by 2020? Working backwards from analyst estimates, it turns out that they expect the company to grow 52.86% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
ENXTAM:KDS Past Future Earnings Mar 9th 18
ENXTAM:KDS Past Future Earnings Mar 9th 18
Underlying developments driving KDS’s growth isn’t the focus of this broad overview, though, bear in mind that typically a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.
Before I wrap up, there’s one issue worth mentioning. KDS currently has a debt-to-equity ratio of over 2x. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in KDS’s case, it has significantly overshot. Note that a higher debt obligation increases the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of KDS to cover in one brief article, but the key fundamentals for the company can all be found in one place – KDS’s company page on Simply Wall St. I’ve also put together a list of relevant factors you should further examine:
Valuation: What is KDS 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 KDS 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 Kiadis Pharma’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.