Companies Like Vaxcyte (NASDAQ:PCVX) Are In A Position To Invest In Growth
Companies Like Vaxcyte (NASDAQ:PCVX) Are In A Position To Invest In Growth
Even when a business is losing money, it's possible for shareholders to make money if they buy a good business at the right price. For example, biotech and mining exploration companies often lose money for years before finding success with a new treatment or mineral discovery. But the harsh reality is that very many loss making companies burn through all their cash and go bankrupt.
即使一家企业亏损,如果股东以正确的价格买入一家好的企业,仍有可能赚钱。例如,生物科技和矿业勘探公司在找到新的治疗方法或矿藏发现之前经常多年亏损。但严酷的现实是,很多亏损的公司会烧光所有现金并破产。
Given this risk, we thought we'd take a look at whether Vaxcyte (NASDAQ:PCVX) shareholders should be worried about its cash burn. For the purpose of this article, we'll define cash burn as the amount of cash the company is spending each year to fund its growth (also called its negative free cash flow). The first step is to compare its cash burn with its cash reserves, to give us its 'cash runway'.
考虑到这种风险,我们想看看Vaxcyte(纳斯达克股票代码:PCVX)的现金烧损是否值得担心。在本文中,我们将将现金烧损定义为公司每年为了资金增长而花费的现金(也称为负自由现金流)。第一步是将其现金烧损与现金储备进行比较,以得出其“现金耗尽时间”。
How Long Is Vaxcyte's Cash Runway?
Vaxcyte的现金耗尽时间有多长呢?
A cash runway is defined as the length of time it would take a company to run out of money if it kept spending at its current rate of cash burn. In June 2024, Vaxcyte had US$1.5b in cash, and was debt-free. In the last year, its cash burn was US$582m. So it had a cash runway of about 2.5 years from June 2024. That's decent, giving the company a couple years to develop its business. The image below shows how its cash balance has been changing over the last few years.
现金耗尽时间被定义为一家公司按照其当前现金烧损速度继续支出的话,它将需要多长时间用光现金。2024年6月,Vaxcyte拥有10.5亿美元现金,并无债务。在过去的一年里,其现金烧损为5820万美元。因此,从2024年6月开始,它的现金耗尽时间约为2.5年。这还不错,使得公司有几年的时间来发展业务。下图显示了近几年来其现金余额的变化情况。
![1724503917262](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240824/42826593-0-4b525a29848bcf76fc321c193e6dc518.webp/bigjpg)
How Is Vaxcyte's Cash Burn Changing Over Time?
Vaxcyte的现金烧损随时间的推移如何变化?因为Vaxcyte目前没有营收,我们认为它是一家初创企业。因此,虽然我们无法通过销售了解其增长,但可以通过现金烧损的变化来了解支出趋势。年度现金烧损增长165%的大幅增长确实对我们的神经有所考验。总体而言,这种支出增长率无法持续太久就会导致资产负债表的薄弱,过去的经验始终值得研究,但最重要的是未来。因此,您可能想要了解公司在未来几年内预计增长多少。
Because Vaxcyte isn't currently generating revenue, we consider it an early-stage business. So while we can't look to sales to understand growth, we can look at how the cash burn is changing to understand how expenditure is trending over time. The skyrocketing cash burn up 165% year on year certainly tests our nerves. That sort of spending growth rate can't continue for very long before it causes balance sheet weakness, generally speaking. While the past is always worth studying, it is the future that matters most of all. So you might want to take a peek at how much the company is expected to grow in the next few years.
因为Vaxcyte目前没有营收,我们认为它是一家初创企业。因此,虽然我们无法通过销售了解其增长,但可以通过现金烧损的变化来了解支出趋势。年度现金烧损增长165%的大幅增长确实对我们的神经有所考验。总体而言,这种支出增长率无法持续太久就会导致资产负债表的薄弱,过去的经验始终值得研究,但最重要的是未来。因此,您可能想要了解公司在未来几年内预计增长多少。
How Hard Would It Be For Vaxcyte To Raise More Cash For Growth?
Vaxcyte为了增长需要筹集更多资金会有多难?
Given its cash burn trajectory, Vaxcyte shareholders may wish to consider how easily it could raise more cash, despite its solid cash runway. Companies can raise capital through either debt or equity. One of the main advantages held by publicly listed companies is that they can sell shares to investors to raise cash and fund growth. By comparing a company's annual cash burn to its total market capitalisation, we can estimate roughly how many shares it would have to issue in order to run the company for another year (at the same burn rate).
鉴于Vaxcyte的现金流动性良好,股东可能希望考虑它能够多容易筹集更多资金,无论通过债务还是权益。上市公司的主要优势之一是可以向投资者出售股票以筹集资金并资助增长。通过比较公司每年的现金流消耗与其总市值,我们可以大致估计它需要发行多少股份才能在另一年中维持公司的运营(以相同的消耗速度)
Since it has a market capitalisation of US$8.7b, Vaxcyte's US$582m in cash burn equates to about 6.7% of its market value. That's a low proportion, so we figure the company would be able to raise more cash to fund growth, with a little dilution, or even to simply borrow some money.
由于Vaxcyte的市值为87亿美元,其5820万美元的现金流动相当于其市值的约6.7%。这个比例较低,因此我们认为该公司可以通过稍微稀释股份或借取一些资金来筹集更多资金以资助增长。
Is Vaxcyte's Cash Burn A Worry?
Vaxcyte的现金流燃烧是否令人担忧?
Even though its increasing cash burn makes us a little nervous, we are compelled to mention that we thought Vaxcyte's cash runway was relatively promising. Based on the factors mentioned in this article, we think its cash burn situation warrants some attention from shareholders, but we don't think they should be worried. On another note, Vaxcyte has 3 warning signs (and 1 which shouldn't be ignored) we think you should know about.
尽管其不断增加的现金流消耗让我们有些担忧,但我们不得不提到我们认为Vaxcyte的现金流动性相对有希望。根据本文提到的因素,我们认为其现金流燃烧情况值得股东们关注,但我们不认为他们应该担心。另外,Vaxcyte有3个警报信号(和1个不应忽视的信号),我们认为您应该了解这些信息。
If you would prefer to check out another company with better fundamentals, then do not miss this free list of interesting companies, that have HIGH return on equity and low debt or this list of stocks which are all forecast to grow.
如果您希望查询其他基本面更好的公司,则不要错过具有高净资产回报率和低债务的有趣公司免费列表,或者这个预计所有股票都会增长的股票列表。
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