Stock Analysis

We Might See A Profit From Acticor Biotech SAS (EPA:ALACT) Soon

Source: Shutterstock

With the business potentially at an important milestone, we thought we'd take a closer look at Acticor Biotech SAS' (EPA:ALACT) future prospects. Acticor Biotech SAS operates as a clinical stage biopharmaceutical company that develops drugs for the treatment for acute thrombotic diseases. On 31 December 2022, the €65m market-cap company posted a loss of €16m for its most recent financial year. Many investors are wondering about the rate at which Acticor Biotech SAS 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.

See our latest analysis for Acticor Biotech SAS

According to some industry analysts covering Acticor Biotech SAS, breakeven is near. They anticipate the company to incur a final loss in 2022, before generating positive profits of €925k in 2023. So, the company is predicted to breakeven approximately 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of -4.7% is expected,

ENXTPA:ALACT Earnings Per Share Growth March 25th 2023

We're not going to go through company-specific developments for Acticor Biotech SAS given that this is a high-level summary, but, keep 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. 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.

Before we wrap up, there’s one issue worth mentioning. Acticor Biotech SAS currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

This article is not intended to be a comprehensive analysis on Acticor Biotech SAS, so if you are interested in understanding the company at a deeper level, take a look at Acticor Biotech SAS' company page on Simply Wall St. We've also put together a list of key factors you should further examine:

  1. Historical Track Record: What has Acticor Biotech SAS' 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.
  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Acticor Biotech SAS' 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.

Valuation is complex, but we're helping make it simple.

Find out whether Acticor Biotech SAS is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis