When Can We Expect A Profit From Sangamo Therapeutics Inc (NASDAQ:SGMO)?

Sangamo Therapeutics Inc’s (NASDAQ:SGMO): Sangamo Therapeutics, Inc. focuses on translating ground-breaking science into genomic therapies that transform patients’ lives using platform technologies in genome editing, gene therapy, gene regulation, and cell therapy. The company’s loss has recently broadened since it announced a -US$54.57m loss in the full financial year, compared to the latest trailing-twelve-month loss of -US$58.12m, moving it further away from breakeven. As path to profitability is the topic on SGMO’s investors mind, I’ve decided to gauge market sentiment. I’ve put together a brief outline of industry analyst expectations for SGMO, its year of breakeven and its implied growth rate.

Check out our latest analysis for Sangamo Therapeutics

SGMO is bordering on breakeven, according to Biotechs analysts. They expect the company to post a final loss in -1, before turning a profit of US$0 in . SGMO is therefore projected to breakeven around a couple of months from now! How fast will SGMO have to grow each year in order to reach the breakeven point by ? Working backwards from analyst estimates, it turns out that they expect the company to grow -12.75% year-on-year, on average,

NasdaqGS:SGMO Past Future Earnings June 22nd 18
NasdaqGS:SGMO Past Future Earnings June 22nd 18

Given this is a high-level overview, I won’t go into details of SGMO’s upcoming projects, 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, periods of lower growth in the upcoming years 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. SGMO 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. SGMO 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 key fundamentals of SGMO 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 SGMO, take a look at SGMO’s company page on Simply Wall St. I’ve also put together a list of important aspects you should further research:

  1. Valuation: What is SGMO 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 SGMO 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 Sangamo Therapeutics’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.