CureVac N.V.'s (NASDAQ:CVAC) Profit Outlook

We feel now is a pretty good time to analyse CureVac N.V.'s (NASDAQ:CVAC) business as it appears the company may be on the cusp of a considerable accomplishment. CureVac N.V., a biopharmaceutical company, focuses on developing various transformative medicines based on messenger ribonucleic acid (mRNA). The US$581m market-cap company posted a loss in its most recent financial year of €260m and a latest trailing-twelve-month loss of €278m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which CureVac 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.

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According to the 6 industry analysts covering CureVac, the consensus is that breakeven is near. They expect the company to post a final loss in 2026, before turning a profit of €76m in 2027. Therefore, the company is expected to breakeven roughly 2 years 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 31%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of CureVac's upcoming projects, but, bear 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.

Check out our latest analysis for CureVac

Before we wrap up, there’s one aspect worth mentioning. CureVac currently has no debt on its balance sheet, which is quite unusual for a cash-burning biotech, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of CureVac 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 CureVac, take a look at CureVac's company page on Simply Wall St. We've also compiled a list of key factors you should look at:

1. Valuation: What is CureVac 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 CureVac 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 CureVac’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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This article by Simply Wall St 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. Simply Wall St has no position in any stocks mentioned.