Yahoo Finance When Will Evaxion Biotech A/S (NASDAQ:EVAX) Turn A Profit?
With the business potentially at an important milestone, we thought we'd take a closer look at Evaxion Biotech A/S' (NASDAQ:EVAX) future prospects. Evaxion Biotech A/S, a clinical-stage biotech company, engages in developing artificial intelligence-powered immunotherapies. With the latest financial year loss of US$23m and a trailing-twelve-month loss of US$24m, the US$24m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which Evaxion Biotech will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.
See our latest analysis for Evaxion Biotech
Consensus from 3 of the American Biotechs analysts is that Evaxion Biotech is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$26m in 2025. 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 52% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving Evaxion Biotech's growth isn’t the focus of this broad overview, though, keep in mind that typically 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 would like to bring into light with Evaxion Biotech is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.
Next Steps:
This article is not intended to be a comprehensive analysis on Evaxion Biotech, so if you are interested in understanding the company at a deeper level, take a look at Evaxion Biotech's company page on Simply Wall St. We've also compiled a list of pertinent aspects you should further examine:
Historical Track Record: What has Evaxion Biotech'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 Evaxion Biotech'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.
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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.
