CureVac N.V. (NASDAQ:CVAC) On The Verge Of Breaking Even

CureVac N.V. (NASDAQ:CVAC) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. CureVac N.V., a clinical-stage biopharmaceutical company, focuses on developing various transformative medicines based on messenger ribonucleic acid (mRNA). On 31 December 2020, the US$21b market-cap company posted a loss of €129m for its most recent financial year. Many investors are wondering about the rate at which CureVac 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.

View our latest analysis for CureVac

CureVac is bordering on breakeven, according to the 5 American Biotechs analysts. They anticipate the company to incur a final loss in 2020, before generating positive profits of €1.0b in 2021. So, the company is predicted to breakeven approximately a year from now or less! At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 20%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

earnings-per-share-growth

Underlying developments driving CureVac's growth isn’t the focus of this broad overview, however, bear 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’d like to point out is that The company has managed its capital judiciously, with debt making up 3.5% 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:

There are key fundamentals of CureVac which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at CureVac, take a look at CureVac's company page on Simply Wall St. We've also put together a list of key aspects you should look at:

1. Valuation: What is CureVac 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 CureVac is currently mispriced by the market.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on CureVac’s board and the CEO’s background.

3. 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.

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. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.