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Aethlon Medical, Inc. (NASDAQ:AEMD) Is About To Turn The Corner

·3 min read

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. The company’s loss has recently broadened since it announced a US$10m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$11m, moving it further away from breakeven. The most pressing concern for investors is Aethlon Medical's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Aethlon Medical

Aethlon Medical is bordering on breakeven, according to the 2 American Medical Equipment analysts. They expect the company to post a final loss in 2022, before turning a profit of US$17m in 2023. The company is therefore projected to breakeven around 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of -28%,

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 generally periods of lower growth in the upcoming years is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. Aethlon Medical currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect 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 compiled a list of key factors you should look at:

  1. Historical Track Record: What has Aethlon 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.

  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.

Have 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.

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