Yahoo Finance Analysts Expect Breakeven For Fortress Biotech, Inc. (NASDAQ:FBIO) Before Long
We feel now is a pretty good time to analyse Fortress Biotech, Inc.'s (NASDAQ:FBIO) business as it appears the company may be on the cusp of a considerable accomplishment. Fortress Biotech, Inc., a biopharmaceutical company, develops and commercializes pharmaceutical and biotechnology products. With the latest financial year loss of US$87m and a trailing-twelve-month loss of US$78m, the US$48m market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Fortress Biotech's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for Fortress Biotech
Consensus from 3 of the American Biotechs analysts is that Fortress Biotech is on the verge of breakeven. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$11m in 2024. The company is therefore projected 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 69% 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 Fortress Biotech given that this is a high-level summary, however, keep in mind that generally biotechs, depending on the stage of product development, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.
Before we wrap up, there’s one issue worth mentioning. Fortress Biotech currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.
Next Steps:
There are key fundamentals of Fortress Biotech 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 Fortress Biotech, take a look at Fortress Biotech's company page on Simply Wall St. We've also compiled a list of important aspects you should look at:
Valuation: What is Fortress Biotech 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 Fortress Biotech 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 Fortress Biotech’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.
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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.
