Want to participate in a short research study? Help shape the future of investing tools and earn a $40 gift card!
Aimmune Therapeutics, Inc.’s (NASDAQ:AIMT): Aimmune Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops and commercializes product candidates for the treatment of peanut and other food allergies. The US$1.0b market-cap posted a loss in its most recent financial year of US$248.5m and a latest trailing-twelve-month loss of US$280.7m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on AIMT’s investors mind, I’ve decided to gauge market sentiment. Below I will provide a high-level summary of the industry analysts’ expectations for AIMT.
Consensus from the 11 Biotechs analysts is AIMT is on the verge of breakeven. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$198m in 2023. Therefore, AIMT is expected to breakeven roughly 3 years from today. In order to meet this breakeven date, I calculated the rate at which AIMT must grow year-on-year. It turns out an average annual growth rate of 74% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, I won’t go into details of AIMT’s upcoming projects, but, take into account that typically biotechs, depending on the stage of product development, have irregular periods of cash flow. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing I would like to bring into light with AIMT is its relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in AIMT’s case is 55%. Note that a higher debt obligation increases the risk around investing in the loss-making company.
There are too many aspects of AIMT to cover in one brief article, but the key fundamentals for the company can all be found in one place – AIMT’s company page on Simply Wall St. I’ve also put together a list of essential factors you should look at:
- Valuation: What is AIMT 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 AIMT is currently mispriced by the market.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Aimmune Therapeutics’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.
This article by Simply Wall St is general in nature. 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.