When Will DBV Technologies SA. (EPA:DBV) Turn A Profit?

DBV Technologies SA.'s (ENXTPA:DBV): DBV Technologies S.A., a clinical-stage biopharmaceutical company, engages in the research and development of epicutaneous immunotherapy products. The €930.72M market-cap posted a loss in its most recent financial year of -€114.53M and a latest trailing-twelve-month loss of -€137.63M leading to an even wider gap between loss and breakeven. The most pressing concern for investors is DBV’s path to profitability – when will it breakeven? Below I will provide a high-level summary of the industry analysts’ expectations for DBV.

DBV is bordering on breakeven, according to analysts. They expect the company to post a final loss in 2020, before turning a profit of €68.71M in 2021. So, DBV is predicted to breakeven approximately 3 years from today. How fast will DBV have to grow each year in order to reach the breakeven point by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 36.05% 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.

I’m not going to go through company-specific developments for DBV given that this is a high-level summary, though, take into account that generally biotechs, depending on the stage of product development, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

Before I wrap up, there’s one aspect worth mentioning. DBV has managed its capital prudently, with debt making up 2.33% of equity. This means that DBV 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:

This article is not intended to be a comprehensive analysis on DBV, so if you are interested in understanding the company at a deeper level, take a look at DBV’s company page on Simply Wall St. I’ve also put together a list of key aspects you should look at:

1. Historical Track Record: What has DBV'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.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on DBV Technologies’s board and the CEO’s back ground.
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.

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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.