We feel now is a pretty good time to analyse ASP Isotopes Inc.'s (NASDAQ:ASPI) business as it appears the company may be on the cusp of a considerable accomplishment. ASP Isotopes Inc., a pre-commercial stage advanced materials company, focuses on the production, distribution, marketing, and sale of isotopes. With the latest financial year loss of US$4.9m and a trailing-twelve-month loss of US$11m, the US$50m market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on ASP Isotopes' investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
ASP Isotopes is bordering on breakeven, according to some American Chemicals analysts. They expect the company to post a final loss in 2023, before turning a profit of US$2.0m in 2024. Therefore, the company is expected to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 87% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving ASP Isotopes' growth isn’t the focus of this broad overview, however, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 0.3% 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.
There are too many aspects of ASP Isotopes to cover in one brief article, but the key fundamentals for the company can all be found in one place – ASP Isotopes' company page on Simply Wall St. We've also put together a list of essential factors you should further research:
Valuation: What is ASP Isotopes worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether ASP Isotopes is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on ASP Isotopes’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.