STRATA Skin Sciences, Inc. (NASDAQ:SSKN): Are Analysts Optimistic?
We feel now is a pretty good time to analyse STRATA Skin Sciences, Inc.'s (NASDAQ:SSKN) business as it appears the company may be on the cusp of a considerable accomplishment. STRATA Skin Sciences, Inc., a medical technology company, develops, commercializes, and markets products for the treatment of dermatologic conditions in the United States, Europe, the Middle East, Asia, Australia, South Africa, and Central and South America. With the latest financial year loss of US$5.5m and a trailing-twelve-month loss of US$7.2m, the US$21m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which STRATA Skin Sciences will turn a profit, with the big question being “when will the company 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 STRATA Skin Sciences
Consensus from 2 of the American Medical Equipment analysts is that STRATA Skin Sciences is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of US$2.6m in 2025. So, the company is predicted 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 69% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving STRATA Skin Sciences' growth isn’t the focus of this broad overview, though, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we would like to bring into light with STRATA Skin Sciences is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in STRATA Skin Sciences' case is 93%. Note that a higher debt obligation increases the risk in investing in the loss-making company.
Next Steps:
There are too many aspects of STRATA Skin Sciences to cover in one brief article, but the key fundamentals for the company can all be found in one place – STRATA Skin Sciences' company page on Simply Wall St. We've also compiled a list of important factors you should look at:
Historical Track Record: What has STRATA Skin Sciences' 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 STRATA Skin Sciences' 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.
