ANI Pharmaceuticals, Inc. (NASDAQ:ANIP): Is Breakeven Near?
With the business potentially at an important milestone, we thought we'd take a closer look at ANI Pharmaceuticals, Inc.'s (NASDAQ:ANIP) future prospects. ANI Pharmaceuticals, Inc., a biopharmaceutical company, develops, manufactures, and markets branded and generic prescription pharmaceuticals in the United States and Canada. With the latest financial year loss of US$50m and a trailing-twelve-month loss of US$28m, the US$996m market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which ANI Pharmaceuticals will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
View our latest analysis for ANI Pharmaceuticals
According to the 5 industry analysts covering ANI Pharmaceuticals, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$23m in 2024. So, the company is predicted to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 57% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Given this is a high-level overview, we won’t go into details of ANI Pharmaceuticals' upcoming projects, though, bear in mind that by and large pharmaceuticals, depending on the stage of product development, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.
Before we wrap up, there’s one issue worth mentioning. ANI Pharmaceuticals currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in ANI Pharmaceuticals' case is 84%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of ANI Pharmaceuticals to cover in one brief article, but the key fundamentals for the company can all be found in one place – ANI Pharmaceuticals' company page on Simply Wall St. We've also put together a list of relevant factors you should look at:
Valuation: What is ANI Pharmaceuticals 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 ANI Pharmaceuticals 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 ANI Pharmaceuticals’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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