Loss-Making Akers Biosciences Inc (NASDAQ:AKER) Expected To Breakeven
Akers Biosciences Inc’s (NASDAQ:AKER): Akers Biosciences, Inc., together with its subsidiaries, develops, manufactures, and supplies rapid screening and testing products designed to deliver healthcare information to healthcare providers and consumers in the United States and internationally. The US$54.74M market-cap company announced a latest loss of -US$5.81M on 31 December 2017 for its most recent financial year result. Many investors are wondering the rate at which AKER will turn a profit, with the big question being “when will the company breakeven?” Below I will provide a high-level summary of the industry analysts’ expectations for AKER.
See our latest analysis for Akers Biosciences
According to the industry analysts covering AKER, breakeven is near. They anticipate the company to incur a final loss in 2017, before generating positive profits of US$1.23M in 2018. AKER is therefore projected to breakeven around a couple of months from now! In order to meet this breakeven date, I calculated the rate at which AKER must grow year-on-year. It turns out an average annual growth rate of 200.13% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, I won’t go into detail the detail of AKER’s upcoming projects, but, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing I’d like to point out is that AKER has no debt on its balance sheet, which is rare for a loss-making loss-making, growth company, which usually has a high level of debt relative to its equity. AKER 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 key fundamentals of AKER which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at AKER, take a look at AKER’s company page on Simply Wall St. I’ve also compiled a list of pertinent aspects you should further research:
Historical Track Record: What has AKER’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 Akers Biosciences’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.
