Axonics, Inc. (NASDAQ:AXNX) Is Expected To Breakeven In The Near Future

We feel now is a pretty good time to analyse Axonics, Inc.'s (NASDAQ:AXNX) business as it appears the company may be on the cusp of a considerable accomplishment. Axonics, Inc., a medical technology company, engages in the development and commercialization of sacral neuromodulation (SNM) systems. With the latest financial year loss of US$80m and a trailing-twelve-month loss of US$76m, the US$3.0b market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Axonics' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Axonics

Axonics is bordering on breakeven, according to the 8 American Medical Equipment analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$14m in 2025. The company is therefore projected to breakeven around 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 55%, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Axonics given that this is a high-level summary, though, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. Axonics currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of debt relative to its equity. This means that the company 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 Axonics to cover in one brief article, but the key fundamentals for the company can all be found in one place – Axonics' company page on Simply Wall St. We've also compiled a list of essential aspects you should look at:

1. Valuation: What is Axonics 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 Axonics 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 Axonics’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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.