Precipio, Inc. (NASDAQ:PRPO) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Precipio, Inc., a cancer diagnostics and reagent technology company, provides diagnostic products and services in the United States oncology market. The US$31m market-cap company posted a loss in its most recent financial year of US$14m and a latest trailing-twelve-month loss of US$8.2m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which Precipio will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Expectations from some of the American Healthcare analysts is that Precipio is on the verge of breakeven. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$123k in 2023. So, the company is predicted to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 64% is expected, 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.
Given this is a high-level overview, we won’t go into details of Precipio's upcoming projects, but, keep in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 0.7% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
This article is not intended to be a comprehensive analysis on Precipio, so if you are interested in understanding the company at a deeper level, take a look at Precipio's company page on Simply Wall St. We've also put together a list of pertinent aspects you should look at:
- Historical Track Record: What has Precipio'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 Precipio's board and the CEO’s background.
- 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.
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.