Sequana Medical NV (EBR:SEQUA) Could Be Less Than A Year Away From Profitability

Sequana Medical NV (EBR:SEQUA) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Sequana Medical NV develops and commercializes treatment of fluid overload in liver disease, cancer, and heart failure. The company’s loss has recently broadened since it announced a €31m loss in the full financial year, compared to the latest trailing-twelve-month loss of €32m, moving it further away from breakeven. Many investors are wondering about the rate at which Sequana Medical will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Sequana Medical

Sequana Medical is bordering on breakeven, according to the 3 Belgian Medical Equipment analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of €4.5m in 2024. Therefore, the company is expected to breakeven roughly 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 67% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Sequana Medical's growth isn’t the focus of this broad overview, but, 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 Sequana Medical is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

There are key fundamentals of Sequana Medical 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 Sequana Medical, take a look at Sequana Medical's company page on Simply Wall St. We've also put together a list of pertinent aspects you should look at:

1. Historical Track Record: What has Sequana Medical'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 Sequana Medical's board and the CEO’s background.
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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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.