We feel now is a pretty good time to analyse Beyond Air, Inc.'s (NASDAQ:XAIR) business as it appears the company may be on the cusp of a considerable accomplishment. 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. The US$130m market-cap company posted a loss in its most recent financial year of US$20m and a latest trailing-twelve-month loss of US$23m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on Beyond Air'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.
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 2023, before generating positive profits of US$30m in 2024. So, the company is predicted to breakeven approximately 3 years from now. 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 74% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Beyond Air's growth isn’t the focus of this broad overview, however, 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 prudently, with debt making up 26% 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 too many aspects of Beyond Air to cover in one brief article, but the key fundamentals for the company can all be found in one place – Beyond Air's company page on Simply Wall St. We've also put together a list of relevant aspects 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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