Antares Pharma, Inc.'s (NASDAQ:ATRS): Antares Pharma, Inc. focuses on developing and commercializing self-administered parenteral pharmaceutical products and technologies worldwide. The US$485m market-cap company’s loss lessens since it announced a -US$6.5m bottom-line in the full financial year, compared to the latest trailing-twelve-month loss of -US$5.9m, as it approaches breakeven. The most pressing concern for investors is ATRS’s path to profitability – when will it breakeven? Below I will provide a high-level summary of the industry analysts’ expectations for ATRS.
ATRS is bordering on breakeven, according to the 5 Medical Equipment analysts. They anticipate the company to incur a final loss in 2019, before generating positive profits of US$37m in 2020. So, ATRS is predicted to breakeven approximately a couple of months from now! In order to meet this breakeven date, I calculated the rate at which ATRS must grow year-on-year. It turns out an average annual growth rate of 54% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving ATRS’s growth isn’t the focus of this broad overview, however, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing I would like to bring into light with ATRS is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in ATRS’s case is 59%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.
There are key fundamentals of ATRS 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 ATRS, take a look at ATRS’s company page on Simply Wall St. I’ve also compiled a list of essential aspects you should further examine:
- Historical Track Record: What has ATRS'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 Antares Pharma’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.
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