Yahoo Movies Market Sentiment Around Loss-Making AngioDynamics, Inc. (NASDAQ:ANGO)
With the business potentially at an important milestone, we thought we'd take a closer look at AngioDynamics, Inc.'s (NASDAQ:ANGO) future prospects. AngioDynamics, Inc. designs, manufactures, and sells various medical, surgical, and diagnostic devices used by professional healthcare providers for the treatment of peripheral vascular disease and vascular access; and for use in oncology and surgical settings in the United States and internationally. On 31 May 2022, the US$811m market-cap company posted a loss of US$27m for its most recent financial year. As path to profitability is the topic on AngioDynamics' 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.
See our latest analysis for AngioDynamics
AngioDynamics is bordering on breakeven, according to the 3 American Medical Equipment analysts. They expect the company to post a final loss in 2024, before turning a profit of US$1.4m in 2025. So, the company is predicted to breakeven approximately 3 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 63% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for AngioDynamics given that this is a high-level summary, but, take into account that typically 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 5.9% 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 key fundamentals of AngioDynamics which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at AngioDynamics, take a look at AngioDynamics' company page on Simply Wall St. We've also put together a list of relevant factors you should further research:
Historical Track Record: What has AngioDynamics' 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 AngioDynamics' 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.
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