We're Not Very Worried About CG Oncology's (NASDAQ:CGON) Cash Burn Rate
We're Not Very Worried About CG Oncology's (NASDAQ:CGON) Cash Burn Rate
Just because a business does not make any money, does not mean that the stock will go down. For example, although Amazon.com made losses for many years after listing, if you had bought and held the shares since 1999, you would have made a fortune. But while the successes are well known, investors should not ignore the very many unprofitable companies that simply burn through all their cash and collapse.
仅仅因为一家企业没有盈利,并不意味着股价会下跌。例如,虽然亚马逊上市后多年一直亏损,但如果你从1999年买入并持有其股票,那你会赚了一大笔钱。但是虽然成功的案例众所周知,投资者不应忽略很多在其所有现金中消耗并最终崩溃的不盈利企业。
Given this risk, we thought we'd take a look at whether CG Oncology (NASDAQ:CGON) shareholders should be worried about its cash burn. In this report, we will consider the company's annual negative free cash flow, henceforth referring to it as the 'cash burn'. We'll start by comparing its cash burn with its cash reserves in order to calculate its cash runway.
考虑到这种风险,我们想看看CG Oncology(纳斯达克股票代码:CGON)的股东是否应该担心其现金燃烧。在本报告中,我们将考虑公司年度的负自由现金流,今后将其称为“现金燃烧”。我们将首先通过比较其现金燃烧与现金储备来计算其现金储备时间。
How Long Is CG Oncology's Cash Runway?
CG Oncology的现金储备时间有多长?
A company's cash runway is calculated by dividing its cash hoard by its cash burn. When CG Oncology last reported its March 2024 balance sheet in May 2024, it had zero debt and cash worth US$567m. Importantly, its cash burn was US$64m over the trailing twelve months. Therefore, from March 2024 it had 8.9 years of cash runway. Importantly, though, analysts think that CG Oncology will reach cashflow breakeven before then. If that happens, then the length of its cash runway, today, would become a moot point. The image below shows how its cash balance has been changing over the last few years.
公司的现金储备时间是通过将其现金储备除以其现金燃烧来计算的。当CG Oncology在2024年3月报告其2024年5月资产负债表时,它没有债务,现金价值为5.67亿美元。重要的是,其现金燃烧在过去12个月内为6400万美元。因此,从2024年3月开始,它有8.9年的现金储备时间。然而,分析师认为CG Oncology将在那之前实现现金流量盈亏平衡。如果发生这种情况,那么今天它的现金储备时间将变得无关紧要。下图显示了其现金余额在过去几年中的变化。
![1724940296421](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240829/43073184-0-ed6935f1d84c5db79ad5b7c05b35df6e.webp/bigjpg)
How Is CG Oncology's Cash Burn Changing Over Time?
CG Oncology的现金燃烧如何随时间变化?
In our view, CG Oncology doesn't yet produce significant amounts of operating revenue, since it reported just US$539k in the last twelve months. As a result, we think it's a bit early to focus on the revenue growth, so we'll limit ourselves to looking at how the cash burn is changing over time. During the last twelve months, its cash burn actually ramped up 99%. Oftentimes, increased cash burn simply means a company is accelerating its business development, but one should always be mindful that this causes the cash runway to shrink. Clearly, however, the crucial factor is whether the company will grow its business going forward. For that reason, it makes a lot of sense to take a look at our analyst forecasts for the company.
在我们看来,CG Oncology目前的经营收入不足以产生重要金额,因为过去12个月仅报告了53.9万美元。因此,我们认为现在专注于营收增长还为时过早,所以我们将限制自己只关注现金燃烧随时间变化的情况。在过去12个月中,其现金燃烧实际上增加了99%。往往情况下,增加的现金燃烧意味着公司正在加速业务发展,但我们始终要注意这会导致现金储备时间缩短。然而,显然,关键因素是公司未来是否会扩大其业务规模。因此,查看我们对公司的分析师预测是非常有意义的。
How Easily Can CG Oncology Raise Cash?
CG Oncology能够轻松筹集资金吗?
While CG Oncology does have a solid cash runway, its cash burn trajectory may have some shareholders thinking ahead to when the company may need to raise more cash. Companies can raise capital through either debt or equity. Many companies end up issuing new shares to fund future growth. We can compare a company's cash burn to its market capitalisation to get a sense for how many new shares a company would have to issue to fund one year's operations.
尽管CG Oncology有着坚实的现金流,但其现金燃烧轨迹可能让一些股东提前考虑公司何时可能需要筹集更多资金。公司可以通过债务或股权来筹集资本。很多公司最终发行新股来为未来的增长提供资金。我们可以将一个公司的现金燃烧与其市值进行比较,以了解一家公司需要发行多少新股来资助一年的运营。
CG Oncology has a market capitalisation of US$2.4b and burnt through US$64m last year, which is 2.6% of the company's market value. So it could almost certainly just borrow a little to fund another year's growth, or else easily raise the cash by issuing a few shares.
CG Oncology的市值为24亿美元,去年烧掉了6400万美元,相当于公司市值的2.6%。因此,它几乎可以借一点钱来资助明年的增长,或者轻松地通过发行几股来筹集资金。
Is CG Oncology's Cash Burn A Worry?
CG Oncology的现金燃烧引起了担忧吗?
As you can probably tell by now, we're not too worried about CG Oncology's cash burn. In particular, we think its cash runway stands out as evidence that the company is well on top of its spending. Although we do find its increasing cash burn to be a bit of a negative, once we consider the other metrics mentioned in this article together, the overall picture is one we are comfortable with. Shareholders can take heart from the fact that analysts are forecasting it will reach breakeven. Looking at all the measures in this article, together, we're not worried about its rate of cash burn; the company seems well on top of its medium-term spending needs. Taking a deeper dive, we've spotted 2 warning signs for CG Oncology you should be aware of, and 1 of them makes us a bit uncomfortable.
正如您现在可以看出的那样,我们对CG Oncology的现金燃烧并不太担心。特别是,我们认为其现金燃烧追踪展示了该公司对支出的良好管理。虽然我们发现其现金燃烧增加有点不太好,但一旦我们综合考虑本文中提及的其他指标,整体情况是我们感到舒适的。股东可以因分析师预计公司将实现盈亏平衡而感到安心。综合考虑本文中的所有措施,我们对其现金燃烧速度并不担心;该公司似乎在掌控中期支出需求方面表现不错。进一步深入分析后,我们发现CG Oncology存在2个警示信号,您应该注意,其中1个让我们感到有些不舒服。
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当然,您可能会在其他地方寻找到一个出色的投资机会。因此,瞥一眼这个有趣公司的免费名单,和这个股票成长股的(根据分析师预测)。
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