Affimed NV.’s (NASDAQ:AFMD): Affimed N.V., a clinical-stage biopharmaceutical company, focuses on discovering and developing cancer immunotherapies in the United States, Europe, and Germany. The company’s loss has recently broadened since it announced a -€30.22M loss in the full financial year, compared to the latest trailing-twelve-month loss of -€30.67M, moving it further away from breakeven. As path to profitability is the topic on AFMD’s investors mind, I’ve decided to gauge market sentiment. Below I will provide a high-level summary of the industry analysts’ expectations for AFMD.See our latest analysis for Affimed
AFMD is bordering on breakeven, according to analysts. They expect the company to post a final loss in 2021, before turning a profit of €17.00M in 2022. AFMD is therefore projected to breakeven around 4 years from today. How fast will AFMD 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 26.08% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, AFMD may become profitable much later than analysts predict.
Underlying developments driving AFMD’s growth isn’t the focus of this broad overview, but, bear 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. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing I’d like to point out is that AFMD has managed its capital judiciously, with debt making up 12.10% of equity. This means that AFMD has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
There are key fundamentals of AFMD 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 AFMD, take a look at AFMD’s company page on Simply Wall St. I’ve also put together a list of important aspects you should further examine:
- Historical Track Record: What has AFMD’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 Affimed’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.