Jupiter Wellness, Inc. (NASDAQ:JUPW), loss-making, expected to break even in the medium term
With the company potentially at an important stage, we thought we’d take a closer look Jupiter Wellness, Inc. (NASDAQ: JUPW) future prospects. Jupiter Wellness, Inc. develops cannabidiol (CBD) therapeutic and medical wellness products. The $26 million market cap company posted a loss of $28 million in its last fiscal year and a final loss of $26 million in the last twelve months, narrowing the gap between the loss and the threshold profitability. The most pressing concern for investors is Jupiter Wellness’ path to profitability – when will it break even? We’ve put together a brief overview of industry analysts’ expectations for the company, its breakeven year and its implied growth rate.
Check out our latest analysis for Jupiter Wellness
Jupiter Wellness is close to breaking even, according to some US Personal Products analysts. They expect the business to make a terminal loss in 2023, before making a profit of US$7.7 million in 2024. So the business is expected to break even in about 2 years from ‘today. In order to meet this balance date, we have calculated the rate at which the company must grow from one year to the next. It turns out that an average annual growth rate of 121% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company could become profitable much later than analysts predict.
Since this is a high-level preview, we won’t go into detail about Jupiter Wellness’ upcoming plans, but keep in mind that in general, a high growth rate does not is not unusual, particularly when a company is in a period of investment.
One thing we would like to point out is that the company has managed its capital prudently, with debt representing 14% of equity. This means that it has mainly financed its operations from equity and that its low indebtedness reduces the risk associated with investing in the loss-making company.
There are too many aspects of Jupiter Wellness to cover in a brief article, but the fundamentals of the business can all be found in one place – the Jupiter Wellness company page on Simply Wall St. We We have also compiled a list of the main aspects you should look at:
Evaluation: What is Jupiter Wellness worth today? Has future growth potential already been factored into the price? The intrinsic value infographic in our free research report visualizes whether Jupiter Wellness is currently being mispriced by the market.
Management team: An experienced management team at the helm bolsters our confidence in the company – take a look at who sits on the Jupiter Wellness board and the CEO’s background.
Other High Performing Stocks: Are there other stocks that offer better prospects with a proven track record? Explore our free list of these great stocks here.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
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