AngioDynamics, Inc.'s (NASDAQ:ANGO): AngioDynamics, Inc. designs, manufactures, and sells various medical, surgical, and diagnostic devices for the treatment of peripheral vascular disease, vascular access, and for use in oncology and surgical settings in the United States and internationally. The US$701m market-cap company announced a latest loss of -US$11.1m on 31 May 2019 for its most recent financial year result. The most pressing concern for investors is ANGO’s path to profitability – when will it breakeven? In this article, I will touch on the expectations for ANGO’s growth and when analysts expect the company to become profitable.
According to the 4 industry analysts covering ANGO, the consensus is breakeven is near. They anticipate the company to incur a final loss in 2020, before generating positive profits of US$4.5m in 2021. ANGO is therefore projected to breakeven around 2 years from now. How fast will ANGO have to grow each year in order to reach the breakeven point by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 109% year-on-year, on average, which signals high confidence from analysts. 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 ANGO’s upcoming projects, but, keep in mind that generally 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 ANGO has managed its capital prudently, with debt making up 21% of equity. This means that ANGO has predominantly funded its operations from equity capital,and its low debt obligation reduces the risk around investing in the loss-making company.
There are key fundamentals of ANGO which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at ANGO, take a look at ANGO’s company page on Simply Wall St. I’ve also put together a list of key factors you should further research:
- Valuation: What is ANGO 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 ANGO 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 AngioDynamics’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.
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