iAnthus Capital Holdings, Inc.'s (CNSX:IAN): iAnthus Capital Holdings, Inc. owns and operates licensed cannabis cultivation, processing, and dispensary facilities in the United States. With the latest financial year loss of -US$62.0m and a trailing-twelve month of -US$53.5m, the CA$349m market-cap alleviates its loss by moving closer towards its target of breakeven. Many investors are wondering the rate at which IAN will turn a profit, with the big question being “when will the company breakeven?” Below I will provide a high-level summary of the industry analysts’ expectations for IAN.
IAN is bordering on breakeven, according to the 9 Pharmaceuticals analysts. They anticipate the company to incur a final loss in 2019, before generating positive profits of US$13m in 2020. IAN is therefore projected to breakeven around a couple of months from now! What rate will IAN have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 88%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving IAN’s growth isn’t the focus of this broad overview, but, bear in mind that typically pharmaceuticals, depending on the stage of product development, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.
Before I wrap up, there’s one aspect worth mentioning. IAN has managed its capital prudently, with debt making up 14% of equity. This means that IAN has predominantly funded its operations from equity capital,and its low debt obligation reduces the risk around investing in the loss-making company.
There are key fundamentals of IAN 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 IAN, take a look at IAN’s company page on Simply Wall St. I’ve also compiled a list of key aspects you should further research:
- Valuation: What is IAN 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 IAN 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 iAnthus Capital Holdings’s board and the CEO’s back ground.
- 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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