When Can We Expect A Profit From DBV Technologies S.A. (EPA:DBV)?
With the business potentially at an important milestone, we thought we'd take a closer look at DBV Technologies S.A.'s (EPA:DBV) future prospects. DBV Technologies S.A., a clinical-stage biopharmaceutical company, engages in the research and development of epicutaneous immunotherapy products in France. The €621m market-cap company posted a loss in its most recent financial year of US$147m and a latest trailing-twelve-month loss of US$176m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on DBV Technologies' investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
According to the 6 industry analysts covering DBV Technologies, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2027, before generating positive profits of US$8.0m in 2028. 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 2028? Working backwards from analyst estimates, it turns out that they expect the company to grow 69% 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.
We're not going to go through company-specific developments for DBV Technologies given that this is a high-level summary, however, take into account that typically 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.
Check out our latest analysis for DBV Technologies
One thing we’d like to point out is that DBV Technologies 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 the company 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 DBV Technologies, so if you are interested in understanding the company at a deeper level, take a look at DBV Technologies' company page on Simply Wall St. We've also compiled a list of key aspects you should look at:
- Valuation: What is DBV Technologies 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 DBV Technologies 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 DBV Technologies’s board and the CEO’s background.
- 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.