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Azenta, Inc. (NASDAQ:AZTA): Is Breakeven Near?

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·2 min read
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With the business potentially at an important milestone, we thought we'd take a closer look at Azenta, Inc.'s (NASDAQ:AZTA) future prospects. Azenta, Inc. provides manufacturing automation solutions for the semiconductor industry, and life science sample-based services and solutions for the life sciences market worldwide. The US$6.9b market-cap company announced a latest loss of US$29m on 30 September 2021 for its most recent financial year result. Many investors are wondering about the rate at which Azenta 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.

See our latest analysis for Azenta

Consensus from 5 of the American Semiconductor analysts is that Azenta is on the verge of breakeven. They expect the company to post a final loss in 2022, before turning a profit of US$60m in 2023. Therefore, the company is expected to breakeven roughly 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 90%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
earnings-per-share-growth

Underlying developments driving Azenta's growth isn’t the focus of this broad overview, however, 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 we’d like to point out is that The company has managed its capital prudently, with debt making up 3.7% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Azenta to cover in one brief article, but the key fundamentals for the company can all be found in one place – Azenta's company page on Simply Wall St. We've also compiled a list of essential aspects you should look at:

  1. Valuation: What is Azenta 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 Azenta is currently mispriced by the market.

  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Azenta’s board and the CEO’s background.

  3. 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.