Analysts Expect Can-Fite BioPharma Ltd. (TLV:CANF) To Breakeven Soon

Can-Fite BioPharma Ltd. (TLV:CANF) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Can-Fite BioPharma Ltd., a clinical-stage biopharmaceutical company, develops orally bioavailable small molecule therapeutic products for the treatment of cancer, liver inflammatory diseases, and erectile dysfunction in Israel. The ₪41m market-cap company posted a loss in its most recent financial year of US$7.6m and a latest trailing-twelve-month loss of US$7.4m shrinking the gap between loss and breakeven. The most pressing concern for investors is Can-Fite BioPharma's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for Can-Fite BioPharma

Can-Fite BioPharma is bordering on breakeven, according to the 2 Israeli Biotechs analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$10m in 2025. Therefore, the company is expected to breakeven roughly 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 145% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Can-Fite BioPharma given that this is a high-level summary, however, take into account that typically 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.

One thing we’d like to point out is that Can-Fite BioPharma has no debt on its balance sheet, which is rare for a loss-making biotech, which usually has a high level of debt relative to its equity. The company 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:

There are key fundamentals of Can-Fite BioPharma which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Can-Fite BioPharma, take a look at Can-Fite BioPharma's company page on Simply Wall St. We've also put together a list of key aspects you should further research:

1. Valuation: What is Can-Fite BioPharma worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Can-Fite BioPharma is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Can-Fite BioPharma’s 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St 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. Simply Wall St has no position in any stocks mentioned.