Oxford Immunotec Global PLC's (NASDAQ:OXFD): Oxford Immunotec Global PLC, a diagnostics company, focuses on developing and commercializing proprietary tests for underserved immune-regulated conditions. With the latest financial year loss of -US$32.9m and a trailing-twelve month of -US$11.4m, the US$402m market-cap alleviates its loss by moving closer towards its target of breakeven. The most pressing concern for investors is OXFD’s path to profitability – when will it breakeven? I’ve put together a brief outline of industry analyst expectations for OXFD, its year of breakeven and its implied growth rate.
See our latest analysis for Oxford Immunotec Global
Expectation from Medical Equipment analysts is OXFD is on the verge of breakeven. They expect the company to post a final loss in 2020, before turning a profit of US$21m in 2021. OXFD is therefore projected to breakeven around a couple of months from now! How fast will OXFD have to grow each year in order to reach the breakeven point by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 71% 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.
Given this is a high-level overview, I won’t go into details of OXFD’s upcoming projects, but, bear 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 issue worth mentioning. OXFD currently has a relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in OXFD’s case is 42%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of OXFD to cover in one brief article, but the key fundamentals for the company can all be found in one place – OXFD’s company page on Simply Wall St. I’ve also put together a list of important factors you should further examine:
- Historical Track Record: What has OXFD'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 Oxford Immunotec Global’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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.