Beyond Air, Inc. (NASDAQ:XAIR) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Beyond Air, Inc., a clinical-stage medical device and biopharmaceutical company, develops inhaled nitric oxide (NO) to treat respiratory infections, and gaseous NO to treat solid tumors. With the latest financial year loss of US$20m and a trailing-twelve-month loss of US$21m, the US$94m market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on Beyond Air's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
According to the 4 industry analysts covering Beyond Air, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$8.0m in 2023. So, the company is predicted to breakeven approximately 3 years 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 78%, 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 Beyond Air's upcoming projects, however, bear in mind that typically 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 25% 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.
There are key fundamentals of Beyond Air which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Beyond Air, take a look at Beyond Air's company page on Simply Wall St. We've also put together a list of relevant factors you should look at:
- Historical Track Record: What has Beyond Air'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 Beyond Air'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.
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This article by Simply Wall St is general in nature. 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.
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