Kazia Therapeutics Limited’s (ASX:KZA): Kazia Therapeutics Limited, a biotechnology company, develops anti-cancer drugs. The AU$30.01m market-cap company’s loss lessens since it announced a -AU$10.67m bottom-line in the full financial year, compared to the latest trailing-twelve-month loss of -AU$6.06m, as it approaches breakeven. The most pressing concern for investors is KZA’s path to profitability – when will it breakeven? In this article, I will touch on the expectations for KZA’s growth and when analysts expect the company to become profitable.Check out our latest analysis for Kazia Therapeutics
Expectation from Biotechs analysts is KZA is on the verge of breakeven. They anticipate the company to incur a final loss in -1, before generating positive profits of AU$0 in . KZA is therefore projected to breakeven around a few months from now. How fast will KZA have to grow each year in order to reach the breakeven point by ? Working backwards from analyst estimates, it turns out that they expect the company to grow -18.73% year-on-year, on average,
Given this is a high-level overview, I won’t go into details of KZA’s upcoming projects, though, take into account that by and large a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. This means that a low or volatile growth rate in the near future is not unusual, especially if the company is currently in an investment period.
One thing I’d like to point out is that KZA 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. This means that KZA has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
There are too many aspects of KZA to cover in one brief article, but the key fundamentals for the company can all be found in one place – KZA’s company page on Simply Wall St. I’ve also put together a list of important aspects you should further research:
- Historical Track Record: What has KZA’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 Kazia Therapeutics’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.