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Aethlon Medical, Inc.'s (NASDAQ:AEMD) Shift From Loss To Profit

With the business potentially at an important milestone, we thought we'd take a closer look at Aethlon Medical, Inc.'s (NASDAQ:AEMD) future prospects. Aethlon Medical, Inc., a medical technology company, focuses on developing products to diagnose and treat life and organ threatening diseases in the United States. With the latest financial year loss of US$6.4m and a trailing-twelve-month loss of US$7.4m, the US$28m market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is Aethlon Medical's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for Aethlon Medical

According to the 3 industry analysts covering Aethlon Medical, the consensus is that breakeven is near. They expect the company to post a final loss in 2022, before turning a profit of US$39m in 2023. So, the company is predicted to breakeven approximately 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 43% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
earnings-per-share-growth

We're not going to go through company-specific developments for Aethlon Medical given that this is a high-level summary, but, take into account that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up -0.1% 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:

There are key fundamentals of Aethlon Medical which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Aethlon Medical, take a look at Aethlon Medical's company page on Simply Wall St. We've also put together a list of key aspects you should look at:

  1. Valuation: What is Aethlon Medical worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Aethlon Medical is currently mispriced by the market.

  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Aethlon Medical’s 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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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