TherapeuticsMD, Inc. (NASDAQ:TXMD): Is Breakeven Near?
Simply Wall St - January 25, 2022
Simply Wall St
January 25, 2022·3 min read
In this article:
TXMD
-8.74%
We feel now is a pretty good time to analyse TherapeuticsMD, Inc.'s (NASDAQ:TXMD) business as it appears the company may be on the cusp of a considerable accomplishment. TherapeuticsMD, Inc. operates as a women’s healthcare company in the United States. With the latest financial year loss of US$184m and a trailing-twelve-month loss of US$172m, the US$130m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on TherapeuticsMD's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
See our latest analysis for TherapeuticsMD
According to the 3 industry analysts covering TherapeuticsMD, the consensus is that breakeven is near. They expect the company to post a final loss in 2022, before turning a profit of US$23m in 2023. Therefore, the company is expected to breakeven just over a year 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 rather optimistic! 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, we won’t go into details of TherapeuticsMD's upcoming projects, but, take into account that typically 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.
Before we wrap up, there’s one issue worth mentioning. TherapeuticsMD currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.
Next Steps:
This article is not intended to be a comprehensive analysis on TherapeuticsMD, so if you are interested in understanding the company at a deeper level, take a look at TherapeuticsMD's company page on Simply Wall St. We've also compiled a list of pertinent factors you should look at:
Valuation: What is TherapeuticsMD 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 TherapeuticsMD 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 TherapeuticsMD’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.
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.
https://finance.yahoo.com/news/therapeuticsmd...22941.html
Simply Wall St - January 25, 2022
Simply Wall St
January 25, 2022·3 min read
In this article:
TXMD
-8.74%
We feel now is a pretty good time to analyse TherapeuticsMD, Inc.'s (NASDAQ:TXMD) business as it appears the company may be on the cusp of a considerable accomplishment. TherapeuticsMD, Inc. operates as a women’s healthcare company in the United States. With the latest financial year loss of US$184m and a trailing-twelve-month loss of US$172m, the US$130m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on TherapeuticsMD's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
See our latest analysis for TherapeuticsMD
According to the 3 industry analysts covering TherapeuticsMD, the consensus is that breakeven is near. They expect the company to post a final loss in 2022, before turning a profit of US$23m in 2023. Therefore, the company is expected to breakeven just over a year 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 rather optimistic! 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, we won’t go into details of TherapeuticsMD's upcoming projects, but, take into account that typically 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.
Before we wrap up, there’s one issue worth mentioning. TherapeuticsMD currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.
Next Steps:
This article is not intended to be a comprehensive analysis on TherapeuticsMD, so if you are interested in understanding the company at a deeper level, take a look at TherapeuticsMD's company page on Simply Wall St. We've also compiled a list of pertinent factors you should look at:
Valuation: What is TherapeuticsMD 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 TherapeuticsMD 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 TherapeuticsMD’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.
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.
https://finance.yahoo.com/news/therapeuticsmd...22941.html
