In This Article:
With the business potentially at an important milestone, we thought we'd take a closer look at Numinus Wellness Inc.'s (TSE:NUMI) future prospects. Numinus Wellness Inc. provides psychedelic-assisted psychotherapy products and services in Canada and the United States. The CA$15m market-cap company’s loss lessened since it announced a CA$30m loss in the full financial year, compared to the latest trailing-twelve-month loss of CA$26m, as it approaches breakeven. As path to profitability is the topic on Numinus Wellness' investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
Check out our latest analysis for Numinus Wellness
According to some industry analysts covering Numinus Wellness, breakeven is near. They anticipate the company to incur a final loss in 2026, before generating positive profits of CA$7.7m in 2027. So, the company is predicted to breakeven approximately 3 years from today. 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 60% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving Numinus Wellness' growth isn’t the focus of this broad overview, however, keep in mind that typically a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business is in. So, 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 judiciously, with debt making up 35% 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.
Next Steps:
There are key fundamentals of Numinus Wellness which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Numinus Wellness, take a look at Numinus Wellness' company page on Simply Wall St. We've also compiled a list of essential factors you should look at:
-
Historical Track Record: What has Numinus Wellness' 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 Numinus Wellness' 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.