ISR Immune System Regulation Holding AB (publ)'s (STO:ISR) Profit Outlook

By
Simply Wall St
Published
May 14, 2022
OM:ISR
Source: Shutterstock

With the business potentially at an important milestone, we thought we'd take a closer look at ISR Immune System Regulation Holding AB (publ)'s (STO:ISR) future prospects. ISR Immune System Regulation Holding AB (publ) researches and develops drugs for the treatment of viral infections in Sweden. On 31 December 2021, the kr424m market-cap company posted a loss of kr79m for its most recent financial year. Many investors are wondering about the rate at which ISR Immune System Regulation Holding 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.

View our latest analysis for ISR Immune System Regulation Holding

Expectations from some of the Swedish Biotechs analysts is that ISR Immune System Regulation Holding is on the verge of breakeven. They anticipate the company to incur a final loss in 2022, before generating positive profits of kr104m in 2023. So, the company is predicted to breakeven just over a year from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 76%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

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OM:ISR Earnings Per Share Growth May 14th 2022

Underlying developments driving ISR Immune System Regulation Holding's growth isn’t the focus of this broad overview, but, keep in mind that typically biotechs, depending on the stage of product development, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 2.6% of equity. This means that it 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:

There are key fundamentals of ISR Immune System Regulation Holding 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 ISR Immune System Regulation Holding, take a look at ISR Immune System Regulation Holding's company page on Simply Wall St. We've also put together a list of relevant factors you should further research:

  1. Valuation: What is ISR Immune System Regulation Holding 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 ISR Immune System Regulation Holding 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 ISR Immune System Regulation Holding’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.

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