When Will Cellectis SA. (NASDAQ:CLLS) Breakeven?

Cellectis SA.’s (NASDAQ:CLLS): Cellectis S.A., a gene-editing company, develops and sells immuno-oncology products based on gene-edited T-cells that express chimeric antigen receptors to target and eradicate cancer in France. The company’s loss has recently broadened since it announced a -US$64.16M loss in the full financial year, compared to the latest trailing-twelve-month loss of -US$90.19M, moving it further away from breakeven. As path to profitability is the topic on CLLS’s investors mind, I’ve decided to gauge market sentiment. I’ve put together a brief outline of industry analyst expectations for CLLS, its year of breakeven and its implied growth rate.

Check out our latest analysis for Cellectis

According to the industry analysts covering CLLS, breakeven is near. They anticipate the company to incur a final loss in 2019, before generating positive profits of US$85.70M in 2020. CLLS is therefore projected to breakeven around 2 years from today. In order to meet this breakeven date, I calculated the rate at which CLLS must grow year-on-year. It turns out an average annual growth rate of 53.30% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, CLLS may become profitable much later than analysts predict.

NasdaqGM:CLLS Past Future Earnings Mar 13th 18
NasdaqGM:CLLS Past Future Earnings Mar 13th 18

I’m not going to go through company-specific developments for CLLS given that this is a high-level summary, though, take into account that by and large 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.

Before I wrap up, there’s one aspect worth mentioning. CLLS has managed its capital prudently, with debt making up 0.015% of equity. This means that CLLS 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 too many aspects of CLLS to cover in one brief article, but the key fundamentals for the company can all be found in one place – CLLS’s company page on Simply Wall St. I’ve also put together a list of essential aspects you should further research:

  1. Historical Track Record: What has CLLS’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 Cellectis’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.