Yahoo Finance When Can We Expect A Profit From MaxCyte, Inc. (LON:MXCT)?
MaxCyte, Inc.'s (LON:MXCT): MaxCyte, Inc. operates as a cell-based therapies and life sciences company in the United States and internationally. With the latest financial year loss of -US$8.9m and a trailing-twelve month of -US$13.6m, the UK£70m market-cap amplifies its loss by moving further away from its breakeven target. As path to profitability is the topic on MXCT’s investors mind, I’ve decided to gauge market sentiment. Below I will provide a high-level summary of the industry analysts’ expectations for MXCT.
See our latest analysis for MaxCyte
MXCT is bordering on breakeven, according to the 3 Biotechs analysts. They expect the company to post a final loss in 2021, before turning a profit of US$2.9m in 2022. MXCT is therefore projected to breakeven around 2 years from now. How fast will MXCT have to grow each year in order to reach the breakeven point by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 60% 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.
Underlying developments driving MXCT’s growth isn’t the focus of this broad overview, though, bear in mind 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.
One thing I’d like to point out is that MXCT has no debt on its balance sheet, which is quite unusual for a cash-burning biotech, which typically has high debt relative to its equity. MXCT 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:
This article is not intended to be a comprehensive analysis on MXCT, so if you are interested in understanding the company at a deeper level, take a look at MXCT’s company page on Simply Wall St. I’ve also compiled a list of essential factors you should further research:
Historical Track Record: What has MXCT'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 MaxCyte’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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