Exact Sciences Corporation (NASDAQ:EXAS) is a company that provides cancer screening and diagnostic test products in the United States and internationally. The company has recently reported a loss of US$204m in the full financial year, compared to a loss of US$240m in the latest trailing-twelve-month period. Investors are eager to see when Exact Sciences will reach profitability.
According to 23 American Biotechs analysts, Exact Sciences is expected to break even in 2025, followed by a profit of US$124m in 2026. This means that the company is on track to break even in approximately 2 years. The company will need to grow at an average annual rate of 68% to reach this goal.
It is important to note that biotech companies often have fluctuating cash flows depending on the product type and development stage. Therefore, a high growth rate is not uncommon, especially during investment periods.
One concern for Exact Sciences is its relatively high level of debt, which currently stands at 76% of its equity. High levels of debt require strict capital management and increase the risk associated with investing in a loss-making company.
For a deeper analysis of Exact Sciences, interested individuals can visit the company’s page on Simply Wall St. Key factors to consider include valuation, management team expertise, and comparison with other high-performing stocks. It is crucial to conduct thorough research before making any investment decisions.
This article by Simply Wall St provides commentary based on historical data and analyst forecasts. It is not intended as financial advice and does not take into account individual objectives or financial situations. Simply Wall St aims to provide unbiased analysis driven by fundamental data.