When Will Rockwell Medical, Inc. (NASDAQ:RMTI) Turn A Profit?

Rockwell Medical, Inc. (NASDAQ:RMTI) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Rockwell Medical, Inc., together with its subsidiaries, operates as a healthcare company that engages in the development, manufacture, commercialization, and distribution of various hemodialysis products for dialysis providers worldwide. The US$110m market-cap company’s loss lessened since it announced a US$8.6m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$4.9m, as it approaches breakeven. As path to profitability is the topic on Rockwell Medical's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

See our latest analysis for Rockwell Medical

Consensus from 2 of the American Medical Equipment analysts is that Rockwell Medical is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of US$2.4m in 2025. The company is therefore projected to breakeven just over a year 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 170%, which is rather optimistic! 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 Rockwell Medical's 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.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 38% 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.

Next Steps:

This article is not intended to be a comprehensive analysis on Rockwell Medical, so if you are interested in understanding the company at a deeper level, take a look at Rockwell Medical's company page on Simply Wall St. We've also compiled a list of relevant factors you should look at:

1. Historical Track Record: What has Rockwell Medical'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.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Rockwell Medical'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.