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Breakeven On The Horizon For TherapeuticsMD, Inc. (NASDAQ:TXMD)

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TherapeuticsMD, Inc. (NASDAQ:TXMD) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. TherapeuticsMD, Inc. operates as a women’s healthcare company in the United States. The US$476m market-cap company posted a loss in its most recent financial year of US$184m and a latest trailing-twelve-month loss of US$166m shrinking the gap between loss and breakeven. As path to profitability is the topic on TherapeuticsMD's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for TherapeuticsMD

According to the 5 industry analysts covering TherapeuticsMD, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$52m in 2023. The company is therefore projected to breakeven around 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 69% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

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

Given this is a high-level overview, we won’t go into details of TherapeuticsMD's upcoming projects, however, keep in mind that typically pharmaceuticals, depending on the stage of product development, have irregular periods of cash flow. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we would like to bring into light with TherapeuticsMD is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are key fundamentals of TherapeuticsMD 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 TherapeuticsMD, take a look at TherapeuticsMD's company page on Simply Wall St. We've also compiled a list of essential factors you should further examine:

  1. Valuation: What is TherapeuticsMD 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 TherapeuticsMD 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 TherapeuticsMD’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.

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.