enVVeno Medical Corporation's (NASDAQ:NVNO) Path To Profitability
With the business potentially at an important milestone, we thought we'd take a closer look at enVVeno Medical Corporation's (NASDAQ:NVNO) future prospects. enVVeno Medical Corporation, a clinical med-tech company, focuses on the development of various bioprosthetic tissue-based solutions to enhance the standard of care in the treatment of venous diseases. The US$63m market-cap company posted a loss in its most recent financial year of US$25m and a latest trailing-twelve-month loss of US$24m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which enVVeno Medical 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 enVVeno Medical
According to some industry analysts covering enVVeno Medical, breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of US$7.3m in 2026. Therefore, the company is expected to breakeven roughly 2 years from today. 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 47%, which is extremely buoyant. 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 enVVeno Medical's upcoming projects, but, bear in mind that by and large a high growth rate 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. enVVeno Medical currently has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high 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 too many aspects of enVVeno Medical to cover in one brief article, but the key fundamentals for the company can all be found in one place – enVVeno Medical's company page on Simply Wall St. We've also put together a list of relevant aspects you should further examine:
Historical Track Record: What has enVVeno Medical's 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 enVVeno Medical'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.
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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.
