Market Sentiment Around Loss-Making Atossa Genetics Inc (NASDAQ:ATOS)

Atossa Genetics Inc’s (NASDAQ:ATOS): Atossa Genetics Inc. a clinical-stage pharmaceutical company, focuses on the development and sale of novel therapeutics and delivery methods for the treatment of breast cancer and other breast conditions in the United States. The US$10.32M market-cap posted a loss in its most recent financial year of -US$10.69M and a latest trailing-twelve-month loss of -US$10.86M leading to an even wider gap between loss and breakeven. As path to profitability is the topic on ATOS’s investors mind, I’ve decided to gauge market sentiment. In this article, I will touch on the expectations for ATOS’s growth and when analysts expect the company to become profitable.

Check out our latest analysis for Atossa Genetics

ATOS is bordering on breakeven, according to analysts. They expect the company to post a final loss in 2020, before turning a profit of US$11.73M in 2021. ATOS is therefore projected to breakeven around 3 years from today. What rate will ATOS 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 56.03%, which is extremely buoyant. If this rate turns out to be too aggressive, ATOS may become profitable much later than analysts predict.

NasdaqCM:ATOS Past Future Earnings May 17th 18
NasdaqCM:ATOS Past Future Earnings May 17th 18

Given this is a high-level overview, I won’t go into detail the detail of ATOS’s upcoming projects, though, keep in mind that typically 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 aspect worth mentioning. ATOS currently has no debt on its balance sheet, which is quite unusual for a cash-burning loss-making, growth company, which usually has a high level of debt relative to its equity. This means that ATOS has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of ATOS to cover in one brief article, but the key fundamentals for the company can all be found in one place – ATOS’s company page on Simply Wall St. I’ve also compiled a list of pertinent aspects you should look at:

  1. Valuation: What is ATOS 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 ATOS is currently mispriced by the market.
  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Atossa Genetics’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.