Aethlon Medical Inc’s (NASDAQ:AEMD): Aethlon Medical, Inc., a medical device company, focuses on creating devices that address unmet medical needs in health and biodefense worldwide. On 31 March 2018, the US$23.00m market-cap posted a loss of -US$5.68m for its most recent financial year. The most pressing concern for investors is AEMD’s path to profitability – when will it breakeven? I’ve put together a brief outline of industry analyst expectations for AEMD, its year of breakeven and its implied growth rate.
Expectation from Medical Equipment analysts is AEMD is on the verge of breakeven. They anticipate the company to incur a final loss in -1, before generating positive profits of US$0 in . AEMD is therefore projected to breakeven around a few months from now. What rate will AEMD have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of -18.02%,
Given this is a high-level overview, I won’t go into details of AEMD’s upcoming projects, however, take into account that generally periods of lower growth in the upcoming years 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 AEMD has managed its capital judiciously, with debt making up 13.94% of equity. This means that AEMD has predominantly funded its operations from equity capital,and its low debt obligation reduces the risk around investing in the loss-making company.
This article is not intended to be a comprehensive analysis on AEMD, so if you are interested in understanding the company at a deeper level, take a look at AEMD’s company page on Simply Wall St. I’ve also put together a list of relevant aspects you should look at:
- Historical Track Record: What has AEMD’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 Aethlon Medical’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.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.