We feel now is a pretty good time to analyse Candel Therapeutics, Inc.'s (NASDAQ:CADL) business as it appears the company may be on the cusp of a considerable accomplishment. Candel Therapeutics, Inc., a clinical stage biopharmaceutical company, develops immunotherapies for cancer patients. With the latest financial year loss of US$38m and a trailing-twelve-month loss of US$54m, the US$581m market-cap company amplified its loss by moving further away from its breakeven target. 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?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Candel Therapeutics is bordering on breakeven, according to the 7 American Biotechs analysts. They expect the company to post a final loss in 2027, before turning a profit of US$35m in 2028. The company is therefore projected to breakeven around 2 years from today. 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 66% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Candel Therapeutics' growth isn’t the focus of this broad overview, though, bear in mind 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.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 34% 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:

There are too many aspects of Candel Therapeutics to cover in one brief article, but the key fundamentals for the company can all be found in one place – Candel Therapeutics' company page on Simply Wall St. We've also compiled a list of important aspects you should further research:

1. 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.
2. 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.
3. 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. 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.