When Will Aeglea Biotherapeutics Inc (NASDAQ:AGLE) Become Profitable?

Aeglea Biotherapeutics Inc's (NASDAQ:AGLE): Aeglea Biotherapeutics, Inc., a biotechnology company, develops enzyme-based therapeutics in the field of amino acid metabolism to treat rare genetic diseases and cancer. With the latest financial year loss of -US$21.70M and a trailing-twelve month of -US$26.24M, the US$127.99M market-cap amplifies its loss by moving further away from its breakeven target. As path to profitability is the topic on AGLE’s investors mind, I’ve decided to gauge market sentiment. In this article, I will touch on the expectations for AGLE’s growth and when analysts expect the company to become profitable.

According to the industry analysts covering AGLE, breakeven is near. They expect the company to post a final loss in 2021, before turning a profit of US$8.33M in 2022. AGLE is therefore projected to breakeven around 4 years from today. What rate will AGLE have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 5.66%, which is fair. Should the business grow at a faster rate, it will become profitable at an earlier date than expected.

Given this is a high-level overview, I won’t go into detail the detail of AGLE’s upcoming projects, though, take into account that typically biotechs, depending on the stage of product development, have irregular periods of cash flow. This means that a low or volatile growth rate in the near future is not unusual, especially if the company is currently in an investment period.

One thing I’d like to point out is that AGLE 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. AGLE 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 too many aspects of AGLE to cover in one brief article, but the key fundamentals for the company can all be found in one place – AGLE’s company page on Simply Wall St. I’ve also put together a list of pertinent aspects you should look at:

1. Historical Track Record: What has AGLE'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 Aeglea Biotherapeutics’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.