Yahoo Finance Market Sentiment Around Loss-Making Anatara Lifesciences Limited (ASX:ANR)
Anatara Lifesciences Limited's (ASX:ANR): Anatara Lifesciences Limited engages in the development of non-antibiotic oral solutions for gastro intestinal diseases in animals and humans in Australia. The company’s loss has recently broadened since it announced a -AU$3.6m loss in the full financial year, compared to the latest trailing-twelve-month loss of -AU$3.9m, moving it further away from breakeven. Many investors are wondering the rate at which ANR will turn a profit, with the big question being “when will the company breakeven?” In this article, I will touch on the expectations for ANR’s growth and when analysts expect the company to become profitable.
Check out our latest analysis for Anatara Lifesciences
Expectation from Biotechs analysts is ANR is on the verge of breakeven. They anticipate the company to incur a final loss in 2020, before generating positive profits of AU$1.0m in 2021. So, ANR is predicted to breakeven approximately 2 years from today. How fast will ANR have to grow each year in order to reach the breakeven point by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 79% 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.
Underlying developments driving ANR’s growth isn’t the focus of this broad overview, though, bear in mind that generally a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing I’d like to point out is that ANR has no debt on its balance sheet, which is rare for a loss-making biotech, which usually has a high level of debt relative to its equity. ANR currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
There are key fundamentals of ANR which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at ANR, take a look at ANR’s company page on Simply Wall St. I’ve also compiled a list of pertinent factors you should look at:
Valuation: What is ANR 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 ANR 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 Anatara Lifesciences’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.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
