Analysts Expect Aethlon Medical, Inc. (NASDAQ:AEMD) To Breakeven Soon
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$13m, moving it further away from breakeven. Many investors are wondering about the rate at which Aethlon Medical will turn a profit, with the big question being “when will the company 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
Consensus from 2 of the American Medical Equipment analysts is that Aethlon Medical is on the verge of breakeven. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$46m in 2023. Therefore, the company is expected to breakeven roughly a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow -84% year-on-year, on average,
Given this is a high-level overview, we won’t go into details of Aethlon Medical's upcoming projects, though, take into account that by and large periods of lower growth in the upcoming years 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 Aethlon Medical 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 important factors you should further examine:
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.
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.
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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