Rockwell Medical, Inc. (NASDAQ:RMTI): Is Breakeven Near?
NASDAQ:RMTI) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Rockwell Medical, Inc. operates as a biopharmaceutical company that targets end-stage renal disease and chronic kidney disease with therapies and products for the treatment of iron deficiency and hemodialysis. The US$104m market-cap company posted a loss in its most recent financial year of US$34.1m and a latest trailing-twelve-month loss of US$30.0m shrinking the gap between loss and breakeven. As path to profitability is the topic on Rockwell Medical’s 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.” data-reactid=”28″>Rockwell Medical, Inc. (NASDAQ:RMTI) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Rockwell Medical, Inc. operates as a biopharmaceutical company that targets end-stage renal disease and chronic kidney disease with therapies and products for the treatment of iron deficiency and hemodialysis. The US$104m market-cap company posted a loss in its most recent financial year of US$34.1m and a latest trailing-twelve-month loss of US$30.0m shrinking the gap between loss and breakeven. As path to profitability is the topic on Rockwell Medical’s 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.
View our latest analysis for Rockwell Medical ” data-reactid=”29″> View our latest analysis for Rockwell Medical
Consensus from 2 of the American Medical Equipment analysts is that Rockwell Medical is on the verge of breakeven. They anticipate the company to incur a final loss in 2021, before generating positive profits of US$12m in 2022. So, the company is predicted to breakeven approximately 2 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 66%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Given this is a high-level overview, we won’t go into details of Rockwell Medical’s upcoming projects, but, keep in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before we wrap up, there’s one issue worth mentioning. Rockwell Medical currently has a debt-to-equity ratio of 128%. Typically, debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. Note that a higher debt obligation increases the risk around investing in the loss-making company.
Next Steps:
Rockwell Medical’s company page on Simply Wall St. We’ve also compiled a list of important factors you should look at:” data-reactid=”50″>There are too many aspects of Rockwell Medical to cover in one brief article, but the key fundamentals for the company can all be found in one place – Rockwell Medical’s company page on Simply Wall St. We’ve also compiled a list of important factors you should look at:
- Historical Track Record: What has Rockwell Medical’s 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.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Rockwell Medical’s board and the CEO’s background.
- 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.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”55″>This article by Simply Wall St is general in nature. 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.
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