Stock Analysis

When Will TG Therapeutics, Inc. (NASDAQ:TGTX) Breakeven?

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NasdaqCM:TGTX
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With the business potentially at an important milestone, we thought we'd take a closer look at TG Therapeutics, Inc.'s (NASDAQ:TGTX) future prospects. TG Therapeutics, Inc., a commercial stage biopharmaceutical company, focuses on the acquisition, development, and commercialization of novel treatments for B-cell malignancies and autoimmune diseases. The US$5.2b market-cap company announced a latest loss of US$279m on 31 December 2020 for its most recent financial year result. Many investors are wondering about the rate at which TG Therapeutics 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.

Check out our latest analysis for TG Therapeutics

According to the 6 industry analysts covering TG Therapeutics, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$69m in 2023. Therefore, the company is expected to breakeven roughly 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 64% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

earnings-per-share-growth
NasdaqCM:TGTX Earnings Per Share Growth April 19th 2021

Underlying developments driving TG Therapeutics' growth isn’t the focus of this broad overview, but, take into account that generally biotechs, depending on the stage of product development, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 5.9% of equity. This means that it 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 TG Therapeutics to cover in one brief article, but the key fundamentals for the company can all be found in one place – TG Therapeutics' company page on Simply Wall St. We've also compiled a list of relevant aspects you should look at:

  1. Valuation: What is TG Therapeutics 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 TG Therapeutics 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 TG Therapeutics’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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What are the risks and opportunities for TG Therapeutics?

TG Therapeutics, Inc., a commercial stage biopharmaceutical company, focuses on the acquisition, development, and commercialization of novel treatments for B-cell malignancies and autoimmune diseases.

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Rewards

  • Trading at 86.1% below our estimate of its fair value

  • Earnings are forecast to grow 52.97% per year

Risks

  • Highly volatile share price over the past 3 months

  • Shareholders have been diluted in the past year

  • Significant insider selling over the past 3 months

  • Has less than 1 year of cash runway

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