We feel now is a pretty good time to analyse Tenax Therapeutics, Inc.'s (NASDAQ:TENX) business as it appears the company may be on the cusp of a considerable accomplishment. Tenax Therapeutics, Inc., a specialty pharmaceutical company, engages in identifying, developing, and commercializing products for cardiovascular and pulmonary diseases in the United States and Canada. With the latest financial year loss of US$32m and a trailing-twelve-month loss of US$13m, the US$6.3m market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Tenax Therapeutics' 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.
Tenax Therapeutics is bordering on breakeven, according to the 2 American Biotechs analysts. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$27m in 2023. The company is therefore projected to breakeven just over a year from now. 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 -3.6% is expected,
Underlying developments driving Tenax Therapeutics' growth isn’t the focus of this broad overview, though, bear in mind that generally biotechs, depending on the stage of product development, have irregular periods of cash flow. This means that a low or volatile growth rate in the near future is not unusual, especially if the company is currently in an investment period.
One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 1.4% 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.
This article is not intended to be a comprehensive analysis on Tenax Therapeutics, so if you are interested in understanding the company at a deeper level, take a look at Tenax Therapeutics' company page on Simply Wall St. We've also put together a list of important factors you should look at:
Historical Track Record: What has Tenax Therapeutics' 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 Tenax Therapeutics' 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here