Vascular Biogenics Ltd's (NASDAQ:VBLT) Path To Profitability

Simply Wall St
June 19, 2018

Vascular Biogenics Ltd's (NASDAQ:VBLT): Vascular Biogenics Ltd., a clinical-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of treatments for cancer. The US$80.72m market-cap posted a loss in its most recent financial year of -US$10.14m and a latest trailing-twelve-month loss of -US$12.28m leading to an even wider gap between loss and breakeven. Many investors are wondering the rate at which VBLT will turn a profit, with the big question being “when will the company breakeven?” In this article, I will touch on the expectations for VBLT’s growth and when analysts expect the company to become profitable.

Check out our latest analysis for Vascular Biogenics

VBLT is bordering on breakeven, according to Biotechs analysts. They anticipate the company to incur a final loss in -1, before generating positive profits of US$0 in . Therefore, VBLT is expected to breakeven roughly a couple of months from now! How fast will VBLT 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 -21.81% year-on-year, on average,

NasdaqGM:VBLT Past Future Earnings June 19th 18
NasdaqGM:VBLT Past Future Earnings June 19th 18

Underlying developments driving VBLT’s growth isn’t the focus of this broad overview, but, keep in mind that generally 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. VBLT currently has no debt on its balance sheet, which is rare for a loss-making biotech, which usually has a high level of debt relative to its equity. This means that VBLT 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:

This article is not intended to be a comprehensive analysis on VBLT, so if you are interested in understanding the company at a deeper level, take a look at VBLT’s company page on Simply Wall St. I’ve also put together a list of key aspects you should look at:

  1. Historical Track Record: What has VBLT'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.
  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Vascular Biogenics’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.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Simply Wall St character - Warren

Simply Wall St

Simply Wall St is a financial technology startup focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of equity analysts with a public, market-beating track record. Learn more about the team behind Simply Wall St.