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Rockwell Medical, Inc.'s (NASDAQ:RMTI): Rockwell Medical, Inc. operates as a specialty pharmaceutical company that targets end-stage renal disease and chronic kidney disease with therapies and products for the treatment of iron deficiency and hemodialysis. The company’s loss has recently broadened since it announced a -US$32.1m loss in the full financial year, compared to the latest trailing-twelve-month loss of -US$35.3m, moving it further away from breakeven. As path to profitability is the topic on RMTI’s investors mind, I’ve decided to gauge market sentiment. In this article, I will touch on the expectations for RMTI’s growth and when analysts expect the company to become profitable.
According to the 2 industry analysts covering RMTI, the consensus is breakeven is near. They expect the company to post a final loss in 2020, before turning a profit of US$38m in 2021. RMTI is therefore projected to breakeven around 2 years from now. In order to meet this breakeven date, I calculated the rate at which RMTI must grow year-on-year. It turns out an average annual growth rate of 64% 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, I won’t go into details of RMTI’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 RMTI has no debt on its balance sheet, which is rare for a loss-making loss-making, growth company, which usually has a high level of debt relative to its equity. RMTI currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
There are key fundamentals of RMTI 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 RMTI, take a look at RMTI’s company page on Simply Wall St. I’ve also put together a list of key aspects you should look at:
- Historical Track Record: What has RMTI'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 Rockwell Medical’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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If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.