Agile Therapeutics Inc’s (NASDAQ:AGRX): Agile Therapeutics, Inc., a women’s healthcare company, focuses on the development and commercialization of prescription contraceptive products for women. With the latest financial year loss of -US$28m and a trailing-twelve month of -US$22m, the US$34m market-cap alleviates its loss by moving closer towards its target of breakeven. Many investors are wondering the rate at which AGRX will turn a profit, with the big question being “when will the company breakeven?” Below I will provide a high-level summary of the industry analysts’ expectations for AGRX.
Expectation from Pharmaceuticals analysts is AGRX is on the verge of breakeven. They expect the company to post a final loss in 2020, before turning a profit of US$18m in 2021. Therefore, AGRX is expected to breakeven roughly a couple of months from now! In order to meet this breakeven date, I calculated the rate at which AGRX must grow year-on-year. It turns out an average annual growth rate of 49% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, I won’t go into details of AGRX’s upcoming projects, however, bear in mind that by and large a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business is in. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing I’d like to point out is that AGRX has managed its capital prudently, with debt making up 25% of equity. This means that AGRX has predominantly funded its operations from equity capital,and its low debt obligation reduces the risk around investing in the loss-making company.
This article is not intended to be a comprehensive analysis on AGRX, so if you are interested in understanding the company at a deeper level, take a look at AGRX’s company page on Simply Wall St. I’ve also put together a list of relevant aspects you should further research:
- Historical Track Record: What has AGRX’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 Agile Therapeutics’s board and the CEO’s back ground.
- 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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
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