Stock Analysis

Amniotics AB (publ) (STO:AMNI): Are Analysts Optimistic?

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Amniotics AB (publ) (STO:AMNI) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Amniotics AB (publ) develops, manufactures, and sells stem cell therapies based on mesenchymal stem cells to treat severe life-threatening diseases. The kr5.6m market-cap company announced a latest loss of kr48m on 31 December 2022 for its most recent financial year result. As path to profitability is the topic on Amniotics' 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.

Check out our latest analysis for Amniotics

According to some industry analysts covering Amniotics, breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of kr10m in 2024. Therefore, the company is expected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 109% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

OM:AMNI Earnings Per Share Growth March 19th 2023

Given this is a high-level overview, we won’t go into details of Amniotics' upcoming projects, but, bear in mind that typically biotechs, 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.

One thing we’d like to point out is that Amniotics has no debt on its balance sheet, which is quite unusual for a cash-burning biotech, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are too many aspects of Amniotics to cover in one brief article, but the key fundamentals for the company can all be found in one place – Amniotics' 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 Amniotics' 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 Amniotics' 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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