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Nutriband Inc. (NASDAQ:NTRB) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Nutriband Inc. develops a portfolio of transdermal pharmaceutical products. With the latest financial year loss of US$5.5m and a trailing-twelve-month loss of US$6.8m, the US$79m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which Nutriband will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
View our latest analysis for Nutriband
Nutriband is bordering on breakeven, according to some American Pharmaceuticals analysts. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$19m in 2027. Therefore, the company is expected to breakeven roughly 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2027? Working backwards from analyst estimates, it turns out that they expect the company to grow 85% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Given this is a high-level overview, we won’t go into details of Nutriband's upcoming projects, though, bear in mind that generally pharmaceuticals, depending on the stage of product development, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.
One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 1.7% 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:
This article is not intended to be a comprehensive analysis on Nutriband, so if you are interested in understanding the company at a deeper level, take a look at Nutriband's company page on Simply Wall St. We've also compiled a list of relevant factors you should look at:
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Historical Track Record: What has Nutriband'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.
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Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Nutriband's board and the CEO’s background.
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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.