TransEnterix Inc (NYSEMKT:TRXC) Is Expected To Breakeven

TransEnterix Inc's (NYSEMKT:TRXC): TransEnterix, Inc., a medical device company, engages in the research, development, and sale of medical device robotics to enhance minimally invasive surgery. The US$740.44m market-cap posted a loss in its most recent financial year of -US$144.80m and a latest trailing-twelve-month loss of -US$130.26m shrinking the gap between loss and breakeven. As path to profitability is the topic on TRXC’s investors mind, I’ve decided to gauge market sentiment. In this article, I will touch on the expectations for TRXC’s growth and when analysts expect the company to become profitable.

TRXC is bordering on breakeven, according to Medical Equipment analysts. They anticipate the company to incur a final loss in -1, before generating positive profits of US$0 in . Therefore, TRXC is expected to breakeven roughly a few months from now. How fast will TRXC have to grow each year in order to reach the breakeven point by ? Working backwards from analyst estimates, it turns out that they expect the company to grow 18.23% year-on-year, on average, which seems relatively fair. 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 TRXC’s upcoming projects, 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 I’d like to point out is that TRXC has managed its capital judiciously, with debt making up 7.18% of equity. This means that TRXC 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 TRXC 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 TRXC, take a look at TRXC’s company page on Simply Wall St. I’ve also put together a list of essential aspects you should further research:

1. Historical Track Record: What has TRXC'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.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on TransEnterix’s board and the CEO’s back ground.
3. 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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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.