Creative Medical Technology Holdings, Inc. (NASDAQ:CELZ): When Will It Breakeven?

We feel now is a pretty good time to analyse Creative Medical Technology Holdings, Inc.’s (NASDAQ:CELZ) business as it appears the company may be on the cusp of a considerable accomplishment. Creative Medical Technology Holdings, Inc., a commercial-stage biotechnology company, focuses on novel biological therapeutics in the fields of immunotherapy, endocrinology, urology, neurology, and orthopedics in the United States. The company’s loss has recently broadened since it announced a US$5.5m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$6.1m, moving it further away from breakeven. As path to profitability is the topic on Creative Medical Technology Holdings’ investors mind, we’ve decided to gauge market sentiment. We’ve put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

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According to some industry analysts covering Creative Medical Technology Holdings, breakeven is near. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$16m in 2027. Therefore, the company is expected to breakeven roughly 2 years from today. 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 62% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Creative Medical Technology Holdings’ growth isn’t the focus of this broad overview, but, take into account that by and large biotechs, depending on the stage of product development, have irregular periods of cash flow. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

View our latest analysis for Creative Medical Technology Holdings

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 0.2% 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 Creative Medical Technology Holdings, so if you are interested in understanding the company at a deeper level, take a look at Creative Medical Technology Holdings’ company page on Simply Wall St. We’ve also compiled a list of pertinent factors you should further examine:

1. Historical Track Record: What has Creative Medical Technology Holdings’ 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.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Creative Medical Technology Holdings’ 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.

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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.