Loss-Making Beyond Air, Inc. (NASDAQ:XAIR) Expected To Breakeven In The Medium-Term
With the business potentially at an important milestone, we thought we'd take a closer look at Beyond Air, Inc.'s (NASDAQ:XAIR) future prospects. Beyond Air, Inc., a clinical-stage medical device and biopharmaceutical company, develops nitric oxide (NO) generator and delivery systems. With the latest financial year loss of US$23m and a trailing-twelve-month loss of US$28m, the US$184m market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is Beyond Air's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
See our latest analysis for Beyond Air
Beyond Air is bordering on breakeven, according to the 5 American Medical Equipment analysts. They expect the company to post a final loss in 2024, before turning a profit of US$27m in 2025. So, the company is predicted to breakeven approximately 3 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 57% is expected, which signals high confidence from analysts. 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, we won’t go into details of Beyond Air's upcoming projects, however, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 0.2% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on Beyond Air, so if you are interested in understanding the company at a deeper level, take a look at Beyond Air's company page on Simply Wall St. We've also compiled a list of important aspects you should look at:
Historical Track Record: What has Beyond Air'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 Beyond Air'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.
