YS Biopharma Co., Ltd. (NASDAQ:YS) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. YS Biopharma Co., Ltd., a biopharmaceutical company, engages in discovering, developing, manufacturing, and commercializing of vaccines and therapeutic biologics for infectious diseases and cancer. The company’s loss has recently broadened since it announced a CN¥145m loss in the full financial year, compared to the latest trailing-twelve-month loss of CN¥195m, moving it further away from breakeven. Many investors are wondering about the rate at which YS Biopharma 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.
View our latest analysis for YS Biopharma
Consensus from 2 of the American Biotechs analysts is that YS Biopharma is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of CN¥116m in 2026. So, the company is predicted to breakeven approximately 3 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 65% is expected, 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 YS Biopharma's growth isn’t the focus of this broad overview, but, take into account that typically biotechs, depending on the stage of product development, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.
Before we wrap up, there’s one issue worth mentioning. YS Biopharma currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in YS Biopharma's case is 78%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.
Next Steps:
There are key fundamentals of YS Biopharma which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at YS Biopharma, take a look at YS Biopharma's company page on Simply Wall St. We've also put together a list of important aspects you should further examine:
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Historical Track Record: What has YS Biopharma'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.
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Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on YS Biopharma's board and the CEO’s background.
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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.