Yahoo Finance MeiraGTx Holdings plc (NASDAQ:MGTX): Is Breakeven Near?
MeiraGTx Holdings plc (NASDAQ:MGTX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. MeiraGTx Holdings plc, a clinical stage gene therapy company, focusing on developing treatments for patients with serious diseases. The US$317m market-cap company announced a latest loss of US$84m on 31 December 2023 for its most recent financial year result. As path to profitability is the topic on MeiraGTx Holdings' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
View our latest analysis for MeiraGTx Holdings
MeiraGTx Holdings is bordering on breakeven, according to the 3 American Biotechs analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$133m in 2025. So, the company is predicted to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 53% 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.
We're not going to go through company-specific developments for MeiraGTx Holdings given that this is a high-level summary, though, bear in mind that generally 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.
Before we wrap up, there’s one issue worth mentioning. MeiraGTx Holdings currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in MeiraGTx Holdings' case is 52%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of MeiraGTx Holdings to cover in one brief article, but the key fundamentals for the company can all be found in one place – MeiraGTx Holdings' company page on Simply Wall St. We've also compiled a list of pertinent factors you should further research:
Historical Track Record: What has MeiraGTx Holdings' 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 MeiraGTx Holdings' 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.
