Yahoo Finance Immutep Limited (ASX:IMM): Is Breakeven Near?
Immutep Limited (ASX:IMM) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Immutep Limited, a clinical-stage biotechnology company, engages in developing novel LAG-3 Immunotherapy for cancer and autoimmune diseases. The AU$440m market-cap company posted a loss in its most recent financial year of AU$40m and a latest trailing-twelve-month loss of AU$41m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is Immutep's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
View our latest analysis for Immutep
Immutep is bordering on breakeven, according to the 6 Australian Biotechs analysts. They expect the company to post a final loss in 2025, before turning a profit of AU$62m in 2026. So, the company is predicted to breakeven approximately 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 62% year-on-year, on average, which is extremely buoyant. 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 Immutep's upcoming projects, but, take into account that typically biotechs, depending on the stage of product development, have irregular periods of cash flow. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 0.8% 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:
This article is not intended to be a comprehensive analysis on Immutep, so if you are interested in understanding the company at a deeper level, take a look at Immutep's company page on Simply Wall St. We've also put together a list of important factors you should further examine:
Valuation: What is Immutep 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 Immutep 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 Immutep’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.
