MaxCyte, Inc.’s (LON:MXCT): MaxCyte, Inc. operates as a cell-based therapies and life sciences company in the United States and internationally. The company’s loss has recently broadened since it announced a -US$8.9m loss in the full financial year, compared to the latest trailing-twelve-month loss of -US$13.6m, moving it further away from breakeven. Many investors are wondering the rate at which MXCT will turn a profit, with the big question being “when will the company breakeven?” In this article, I will touch on the expectations for MXCT’s growth and when analysts expect the company to become profitable.
Consensus from the 3 Biotechs analysts is MXCT is on the verge of breakeven. They expect the company to post a final loss in 2021, before turning a profit of US$2.9m in 2022. So, MXCT is predicted to breakeven approximately 2 years from today. 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 signals high confidence from analysts. If this rate turns out to be too aggressive, MXCT may become profitable much later than analysts predict.
Underlying developments driving MXCT’s growth isn’t the focus of this broad overview, though, take into account 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 high growth rate is not unusual, especially if the company is currently in an investment period.
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.
There are key fundamentals of MXCT which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at MXCT, take a look at MXCT’s company page on Simply Wall St. I’ve also put together a list of pertinent aspects you should look at:
- 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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