Breakeven Is Near for Sharps Technology, Inc. (NASDAQ:STSS)

Sharps Technology, Inc. (NASDAQ:STSS) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Sharps Technology Inc., a medical device company, researches, designs, develops, manufactures, distributes, and sells safety syringe products in the United States. The US$11m market-cap company posted a loss in its most recent financial year of US$4.7m and a latest trailing-twelve-month loss of US$5.4m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on Sharps Technology's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Sharps Technology

According to some industry analysts covering Sharps Technology, breakeven is near. They expect the company to post a final loss in 2021, before turning a profit of US$190k in 2022. So, the company is predicted to breakeven approximately 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 126% year-on-year, on average, which is extremely buoyant. 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 Sharps Technology given that this is a high-level summary, but, take into account that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. Sharps Technology 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. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

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

1. Valuation: What is Sharps Technology 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 Sharps Technology 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 Sharps Technology’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.