Analysts Expect Breakeven For Candel Therapeutics, Inc. (NASDAQ:CADL) Before Long
Candel Therapeutics, Inc. (NASDAQ:CADL) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Candel Therapeutics, Inc., a clinical stage biopharmaceutical company, develops immunotherapies for cancer patients. The US$709m market-cap company posted a loss in its most recent financial year of US$38m and a latest trailing-twelve-month loss of US$89m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which Candel Therapeutics will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
Candel Therapeutics is bordering on breakeven, according to the 8 American Biotechs analysts. They anticipate the company to incur a final loss in 2027, before generating positive profits of US$6.1m 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.
Underlying developments driving Candel Therapeutics' growth isn’t the focus of this broad overview, though, bear in mind that by and large 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.
See our latest analysis for Candel Therapeutics
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 38% 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:
This article is not intended to be a comprehensive analysis on Candel Therapeutics, so if you are interested in understanding the company at a deeper level, take a look at Candel Therapeutics' company page on Simply Wall St. We've also compiled a list of important factors you should further research:
- Valuation: What is Candel 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 Candel Therapeutics 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 Candel Therapeutics’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.
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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.