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We think now is the right time to analyze MiMedx Group, Inc. (NASDAQ: MDXG) because it looks like the company is on the cusp of a huge accomplishment. MiMedx Group, Inc. develops and distributes placental tissue allografts for various health sectors. The US $ 777 million market-capitalization company recorded a loss in its last year of US $ 83 million and a last year-over-year loss of US $ 83 million, narrowing the gap between the loss and the break even. The most pressing concern for investors is the MiMedx Group’s path to profitability – when will it break even? In this article, we’ll discuss the company’s growth expectations and when analysts expect it to become profitable.
According to the 3 industry analysts covering MiMedx Group, the consensus is that the breakeven point is near. They predict that the company will experience a terminal loss in 2022, before generating positive profits of US $ 21 million in 2023. The company is therefore expected to break even in about 2 years. 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 69% is expected, which is pretty optimistic! If this rate turns out to be too aggressive, the company could become profitable much later than analysts predict.
NasdaqCM: MDXG Growth in earnings per share October 19, 2021
The developments underlying the growth of the MiMedx group are not the focus of this general overview, however, keep in mind that generally biotechnologies, depending on the stage of product development, have periods of irregular cash flow. . Thus, a high growth rate is not unusual, especially when a company is in the period of investment.
One thing we would like to highlight with MiMedx Group is its relatively high level of debt. As a general rule, debt should not exceed 40% of your equity, which in the case of MiMedx Group is 56%. A higher level of debt requires tighter capital management, which increases the risk of investing in the loss-making company.
Next steps:
There are key fundamentals of the MiMedx Group that are not covered in this article, but we have to stress again that this is just a basic overview. For a more complete overview of the MiMedx Group, check out the MiMedx Group Company page on Simply Wall St. We have also compiled a list of key aspects that you should take a closer look at:
- Historical review: How has the MiMedx group performed in the past? Go deeper into the background analysis and take a look at the free visual representations of our analysis for clarity.
- Management team: An experienced management team at the helm increases our confidence in the company – take a look at the MiMedx Group board members 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.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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