Will Aprea Therapeutics (NASDAQ:APRE) Spend Its Cash Wisely?

Simply Wall St.07-22

Just because a business does not make any money, does not mean that the stock will go down. For example, biotech and mining exploration companies often lose money for years before finding success with...

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For example, biotech and mining exploration companies often lose money for years before finding success with...</p>\n\n<a href=\"https://finance.yahoo.com/news/aprea-therapeutics-nasdaq-apre-spend-100941666.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Will Aprea Therapeutics (NASDAQ:APRE) Spend Its Cash Wisely?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWill Aprea Therapeutics (NASDAQ:APRE) Spend Its Cash Wisely?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-22 18:09 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/aprea-therapeutics-nasdaq-apre-spend-100941666.html><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Just because a business does not make any money, does not mean that the stock will go down. For example, biotech and mining exploration companies often lose money for years before finding success with...</p>\n\n<a href=\"https://finance.yahoo.com/news/aprea-therapeutics-nasdaq-apre-spend-100941666.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"TQQQ","symbol_name":"纳指三倍做多ETF","start_time":0,"source_url":"https://finance.yahoo.com/news/aprea-therapeutics-nasdaq-apre-spend-100941666.html","article_id":"2453375013","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/d3vISzLZXw94x30FKv9beA--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/simply_wall_st__316/4d522452d0da08d8412701a84270533b"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2453375013","pubTimestamp":1721642981,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Just because a business does not make any money, does not mean that the stock will go down. For example, biotech and mining exploration companies often lose money for years before finding success with a new treatment or mineral discovery. But while history lauds those rare successes, those that fail are often forgotten; who remembers Pets.com?So, the natural question for Aprea Therapeutics  shareholders is whether they should be concerned by its rate of cash burn. In this report, we will consider the company's annual negative free cash flow, henceforth referring to it as the 'cash burn'. First, we'll determine its cash runway by comparing its cash burn with its cash reserves.When Might Aprea Therapeutics Run Out Of Money?On this analysis of Aprea Therapeutics' cash burn, we think its cash","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"TQQQ":"纳指三倍做多ETF","BK4139":"生物科技","BK4588":"碎股","QID":"纳指两倍做空ETF",".IXIC":"NASDAQ Composite","LU2095319765.USD":"Natixis Thematics Subscription Economy R/A USD","PSQ":"纳指反向ETF","QQQ":"纳指100ETF","BK4112":"金融交易所和数据","APRE":"Aprea Therapeutics, Inc.","QLD":"纳指两倍做多ETF","BK4585":"ETF&股票定投概念","LU2210150020.SGD":"Natixis Thematics Subscription Economy R/A SGD","LU2210149790.SGD":"Natixis Thematics Subscription Economy R/A SGD-H","NDAQ":"纳斯达克OMX交易所","SQQQ":"纳指三倍做空ETF"},"translate_title":"Aprea Therapeutics（纳斯达克股票代码：APRE）会明智地使用现金吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"APRE":1,".IXIC":1,"NDAQ":1,"TQQQ":0.6,"SQQQ":0.6,"QQQ":0.6,"QLD":0.6,"QID":0.6,"PSQ":0.6,"NQmain":0.6,"MNQmain":0.6},"content_text":"Just because a business does not make any money, does not mean that the stock will go down. For example, biotech and mining exploration companies often lose money for years before finding success with a new treatment or mineral discovery. But while history lauds those rare successes, those that fail are often forgotten; who remembers Pets.com? \n So, the natural question for Aprea Therapeutics (NASDAQ:APRE) shareholders is whether they should be concerned by its rate of cash burn. In this report, we will consider the company's annual negative free cash flow, henceforth referring to it as the 'cash burn'. First, we'll determine its cash runway by comparing its cash burn with its cash reserves. \n View our latest analysis for Aprea Therapeutics \n When Might Aprea Therapeutics Run Out Of Money? \n A company's cash runway is calculated by dividing its cash hoard by its cash burn. When Aprea Therapeutics last reported its March 2024 balance sheet in May 2024, it had zero debt and cash worth US$32m. Looking at the last year, the company burnt through US$13m. Therefore, from March 2024 it had 2.4 years of cash runway. 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. \n\n\n\n  NasdaqCM:APRE Debt to Equity History July 22nd 2024\n \n\n How Is Aprea Therapeutics' Cash Burn Changing Over Time? \n In our view, Aprea Therapeutics doesn't yet produce significant amounts of operating revenue, since it reported just US$964k 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. While it hardly paints a picture of imminent growth, the fact that it has reduced its cash burn by 41% over the last year suggests some degree of prudence. While the past is always worth studying, it is the future that matters most of all. For that reason, it makes a lot of sense to take a look at our analyst forecasts for the company. \n How Easily Can Aprea Therapeutics Raise Cash? \n While Aprea Therapeutics is showing a solid reduction in its cash burn, it's still worth considering how easily it could raise more cash, even just to fuel faster growth. Companies can raise capital through either debt or equity. Commonly, a business will sell new shares in itself to raise cash and drive growth. By looking at a company's cash burn relative to its market capitalisation, we gain insight on how much shareholders would be diluted if the company needed to raise enough cash to cover another year's cash burn. \n Aprea Therapeutics has a market capitalisation of US$22m and burnt through US$13m last year, which is 61% of the company's market value. That's very high expenditure relative to the company's size, suggesting it is an extremely high risk stock. \n So, Should We Worry About Aprea Therapeutics' Cash Burn? \n On this analysis of Aprea Therapeutics' cash burn, we think its cash runway was reassuring, while its cash burn relative to its market cap has us a bit worried. While we're the kind of investors who are always a bit concerned about the risks involved with cash burning companies, the metrics we have discussed in this article leave us relatively comfortable about Aprea Therapeutics' situation. On another note, Aprea Therapeutics has 4 warning signs (and 1 which can't be ignored) we think you should know about. \n Of course Aprea Therapeutics may not be the best stock to buy. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. \nHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.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.\nHave feedback on this article? Concerned about the content? Get in touch with us directly. 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