Misonix, Inc.'s (NASDAQ:MSON): Misonix, Inc., together with its subsidiaries, designs, develops, manufactures, and markets therapeutic ultrasonic medical devices in the United States, the Americas, Europe, Middle East, Asia Pacific, Africa, and internationally. The US$163m market-cap company’s loss lessens since it announced a -US$7.8m bottom-line in the full financial year, compared to the latest trailing-twelve-month loss of -US$3.2m, as it approaches breakeven. Many investors are wondering the rate at which MSON will turn a profit, with the big question being “when will the company breakeven?” In this article, I will touch on the expectations for MSON’s growth and when analysts expect the company to become profitable.
According to the 2 industry analysts covering MSON, the consensus is breakeven is near. They anticipate the company to incur a final loss in 2020, before generating positive profits of US$241k in 2021. Therefore, MSON is expected to breakeven roughly 2 years from now. In order to meet this breakeven date, I calculated the rate at which MSON must grow year-on-year. It turns out an average annual growth rate of 72% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, MSON may become profitable much later than analysts predict.
Given this is a high-level overview, I won’t go into details of MSON’s upcoming projects, but, take into account that typically a high growth rate 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 MSON has no debt on its balance sheet, which is quite unusual for a cash-burning loss-making, growth company, which typically has high debt relative to its equity. This means that MSON has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
There are key fundamentals of MSON 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 MSON, take a look at MSON’s company page on Simply Wall St. I’ve also compiled a list of pertinent factors you should further research:
- Historical Track Record: What has MSON'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 Misonix’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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