Analysts Are Optimistic We'll See A Profit From Tenax Therapeutics, Inc. (NASDAQ:TENX)
With the business potentially at an important milestone, we thought we'd take a closer look at Tenax Therapeutics, Inc.'s (NASDAQ:TENX) future prospects. Tenax Therapeutics, Inc., a specialty pharmaceutical company, engages in identifying, developing, and commercializing products for cardiovascular and pulmonary diseases in the United States and Canada. The US$8.5m market-cap company posted a loss in its most recent financial year of US$32m and a latest trailing-twelve-month loss of US$12m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which Tenax Therapeutics 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.
View our latest analysis for Tenax Therapeutics
Expectations from some of the American Biotechs analysts is that Tenax Therapeutics is on the verge of breakeven. They expect the company to post a final loss in 2022, before turning a profit of US$27m in 2023. 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 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow -7.6% year-on-year, on average,
Underlying developments driving Tenax Therapeutics' growth isn’t the focus of this broad overview, however, keep in mind that by and large a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. So, 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. Tenax Therapeutics currently has no debt on its balance sheet, which is quite unusual for a cash-burning biotech, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
There are key fundamentals of Tenax Therapeutics 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 Tenax Therapeutics, take a look at Tenax Therapeutics' company page on Simply Wall St. We've also compiled a list of pertinent aspects you should further research:
Historical Track Record: What has Tenax Therapeutics' 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 Tenax Therapeutics' 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.
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