Apollo Endosurgery Inc’s (NASDAQ:APEN): Apollo Endosurgery, Inc., a medical technology company, focuses on the design, development, and commercialization of medical devices for the treatment of obesity. The US$98.05m market-cap posted a loss in its most recent financial year of -US$27.29m and a latest trailing-twelve-month loss of -US$27.21m shrinking the gap between loss and breakeven. As path to profitability is the topic on APEN’s investors mind, I’ve decided to gauge market sentiment. I’ve put together a brief outline of industry analyst expectations for APEN, its year of breakeven and its implied growth rate.Check out our latest analysis for Apollo Endosurgery
APEN 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, APEN is expected to breakeven roughly a couple of months from now! What rate will APEN 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 19.55%, which seems relatively fair. However, if this rate turns out to be too buoyant, APEN may become profitable later than analysts predict.
Underlying developments driving APEN’s growth isn’t the focus of this broad overview, though, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before I wrap up, there’s one issue worth mentioning. APEN currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in APEN’s case is 79.19%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.
There are too many aspects of APEN to cover in one brief article, but the key fundamentals for the company can all be found in one place – APEN’s company page on Simply Wall St. I’ve also compiled a list of important factors you should further research:
- Historical Track Record: What has APEN’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.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Apollo Endosurgery’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.