Yahoo Movies Flora Growth Corp. (NASDAQ:FLGC): When Will It Breakeven?
Flora Growth Corp. (NASDAQ:FLGC) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Flora Growth Corp., together with its subsidiaries, engages in the growth, cultivation, and development of medicinal cannabis and medicinal cannabis derivative products to pharmacies, medical clinics, and cosmetic companies worldwide. The company’s loss has recently broadened since it announced a US$21m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$53m, moving it further away from breakeven. Many investors are wondering about the rate at which Flora Growth will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
View our latest analysis for Flora Growth
Consensus from 4 of the American Personal Products analysts is that Flora Growth is on the verge of breakeven. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$2.6m in 2024. Therefore, the company is expected to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 97% year-on-year, on average, 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.
We're not going to go through company-specific developments for Flora Growth given that this is a high-level summary, but, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 0.2% 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.
Next Steps:
There are too many aspects of Flora Growth to cover in one brief article, but the key fundamentals for the company can all be found in one place – Flora Growth's company page on Simply Wall St. We've also compiled a list of important aspects you should look at:
Valuation: What is Flora Growth 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 Flora Growth 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 Flora Growth’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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
