Merus NV’s (NASDAQ:MRUS): Merus N.V., a clinical-stage immuno-oncology company, engages in developing bispecific antibody therapeutics. The US$466.75m market-cap company announced a latest loss of -US$73.09m on 31 December 2017 for its most recent financial year result. Many investors are wondering the rate at which MRUS will turn a profit, with the big question being “when will the company breakeven?” Below I will provide a high-level summary of the industry analysts’ expectations for MRUS.See our latest analysis for Merus
According to the industry analysts covering MRUS, breakeven is near. They expect the company to post a final loss in -1, before turning a profit of US$0 in . So, MRUS is predicted to breakeven approximately a few months from now. In order to meet this breakeven date, I calculated the rate at which MRUS must grow year-on-year. It turns out an average annual growth rate of -3.98% is expected,
Underlying developments driving MRUS’s growth isn’t the focus of this broad overview, but, keep in mind 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.
Before I wrap up, there’s one aspect worth mentioning. MRUS currently 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. MRUS 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 too many aspects of MRUS to cover in one brief article, but the key fundamentals for the company can all be found in one place – MRUS’s company page on Simply Wall St. I’ve also put together a list of essential factors you should further examine:
- Historical Track Record: What has MRUS’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 Merus’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.