Corvus Pharmaceuticals Inc’s (NASDAQ:CRVS): Corvus Pharmaceuticals, Inc., a clinical stage biopharmaceutical company, focuses on the development and commercialization of immuno-oncology therapies that are designed to harness the immune system to attack cancer cells. The US$357.91m market-cap company’s loss lessens since it announced a -US$55.66m bottom-line in the full financial year, compared to the latest trailing-twelve-month loss of -US$53.93m, as it approaches breakeven. Many investors are wondering the rate at which CRVS will turn a profit, with the big question being “when will the company breakeven?” I’ve put together a brief outline of industry analyst expectations for CRVS, its year of breakeven and its implied growth rate.Check out our latest analysis for Corvus Pharmaceuticals
According to the industry analysts covering CRVS, breakeven is near. They anticipate the company to incur a final loss in -1, before generating positive profits of US$0 in . So, CRVS is predicted to breakeven approximately a few months from now. In order to meet this breakeven date, I calculated the rate at which CRVS must grow year-on-year. It turns out an average annual growth rate of -11.33% is expected,
Given this is a high-level overview, I won’t go into details of CRVS’s upcoming projects, though, keep in mind that typically a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. 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 CRVS 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. CRVS currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
There are key fundamentals of CRVS 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 CRVS, take a look at CRVS’s company page on Simply Wall St. I’ve also compiled a list of essential aspects you should further research:
- Historical Track Record: What has CRVS’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 Corvus Pharmaceuticals’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.