Analysts Expect Bioventus Inc. (NASDAQ:BVS) To Breakeven Soon

We feel now is a pretty good time to analyse Bioventus Inc.'s (NASDAQ:BVS) business as it appears the company may be on the cusp of a considerable accomplishment. Bioventus Inc., a medical device company, focuses on relieving pain and addressing musculoskeletal therapies in the United States and internationally. The US$441m market-cap company posted a loss in its most recent financial year of US$34m and a latest trailing-twelve-month loss of US$31m shrinking the gap between loss and breakeven. The most pressing concern for investors is Bioventus' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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Consensus from 4 of the American Medical Equipment analysts is that Bioventus is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$15m in 2025. So, the company is predicted to breakeven approximately 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 92%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of Bioventus' upcoming projects, though, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

View our latest analysis for Bioventus

Before we wrap up, there’s one issue worth mentioning. Bioventus currently has a debt-to-equity ratio of 187%. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Bioventus, so if you are interested in understanding the company at a deeper level, take a look at Bioventus' company page on Simply Wall St. We've also put together a list of important aspects you should look at:

1. Valuation: What is Bioventus 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 Bioventus 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 Bioventus’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.

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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.