Yahoo Finance Analysts Expect Breakeven For AxoGen, Inc. (NASDAQ:AXGN) Before Long
AxoGen, Inc. (NASDAQ:AXGN) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. AxoGen, Inc., together with its subsidiaries, develops and commercializes technologies for peripheral nerve regeneration and repair worldwide. On 31 December 2023, the US$352m market-cap company posted a loss of US$22m for its most recent financial year. The most pressing concern for investors is AxoGen's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
See our latest analysis for AxoGen
AxoGen is bordering on breakeven, according to the 5 American Medical Equipment analysts. They expect the company to post a final loss in 2025, before turning a profit of US$12m in 2026. The company is therefore projected to breakeven around 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 71%, 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.
Underlying developments driving AxoGen's growth isn’t the focus of this broad overview, though, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we would like to bring into light with AxoGen is its relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in AxoGen's case is 52%. Note that a higher debt obligation increases the risk around investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on AxoGen, so if you are interested in understanding the company at a deeper level, take a look at AxoGen's company page on Simply Wall St. We've also put together a list of pertinent factors you should further research:
Valuation: What is AxoGen 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 AxoGen 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 AxoGen’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.
