AirSculpt Technologies, Inc. (NASDAQ:AIRS) Is About To Turn The Corner
We feel now is a pretty good time to analyse AirSculpt Technologies, Inc.'s (NASDAQ:AIRS) business as it appears the company may be on the cusp of a considerable accomplishment. AirSculpt Technologies, Inc., together with its subsidiaries, focuses on operating as a holding company for EBS Intermediate Parent LLC that provides body contouring procedure services in the United States. On 31 December 2023, the US$355m market-cap company posted a loss of US$4.5m for its most recent financial year. As path to profitability is the topic on AirSculpt Technologies' investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
See our latest analysis for AirSculpt Technologies
AirSculpt Technologies is bordering on breakeven, according to the 3 American Healthcare analysts. They expect the company to post a final loss in 2023, before turning a profit of US$8.7m in 2024. The company is therefore projected to breakeven around a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 72% year-on-year, on average, which is extremely buoyant. 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, we won’t go into details of AirSculpt Technologies' upcoming projects, though, keep in mind that generally 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. AirSculpt Technologies currently has a relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in AirSculpt Technologies' case is 85%. Note that a higher debt obligation increases the risk in investing in the loss-making company.
Next Steps:
There are too many aspects of AirSculpt Technologies to cover in one brief article, but the key fundamentals for the company can all be found in one place – AirSculpt Technologies' company page on Simply Wall St. We've also compiled a list of key aspects you should further examine:
Valuation: What is AirSculpt Technologies 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 AirSculpt Technologies is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on AirSculpt Technologies’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.
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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.
