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TherapeuticsMD, Inc.'s (NASDAQ:TXMD): TherapeuticsMD, Inc. operates as a women’s health care product company in the United States. The US$598m market-cap posted a loss in its most recent financial year of -US$132.6m and a latest trailing-twelve-month loss of -US$147.7m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is TXMD’s path to profitability – when will it breakeven? Below I will provide a high-level summary of the industry analysts’ expectations for TXMD.
View our latest analysis for TherapeuticsMD
According to the 7 industry analysts covering TXMD, the consensus is breakeven is near. They expect the company to post a final loss in 2020, before turning a profit of US$100m in 2021. TXMD is therefore projected to breakeven around 2 years from today. How fast will TXMD have to grow each year in order to reach the breakeven point by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 71% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, TXMD may become profitable much later than analysts predict.
Underlying developments driving TXMD’s growth isn’t the focus of this broad overview, but, bear in mind that typically pharmaceuticals, depending on the stage of product development, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.
Before I wrap up, there’s one issue worth mentioning. TXMD currently has a debt-to-equity ratio of 121%. Typically, debt shouldn’t exceed 40% of your equity, which in TXMD’s case, it has significantly overshot. Note that a higher debt obligation increases the risk around investing in the loss-making company.
Next Steps:
There are key fundamentals of TXMD which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at TXMD, take a look at TXMD’s company page on Simply Wall St. I’ve also put together a list of essential aspects you should look at:
- Valuation: What is TXMD 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 TXMD is currently mispriced by the market.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on TherapeuticsMD’s board and the CEO’s back ground.
- 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.