Yahoo Finance electroCore, Inc.'s (NASDAQ:ECOR) Path To Profitability
electroCore, Inc. (NASDAQ:ECOR) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. electroCore, Inc., a commercial stage bioelectronic medicine and wellness company, provides non-invasive vagus nerve stimulation technology platform in the United States, the United Kingdom, and internationally. The US$40m market-cap company’s loss lessened since it announced a US$19m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$16m, as it approaches breakeven. The most pressing concern for investors is electroCore'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 electroCore
Consensus from 5 of the American Medical Equipment analysts is that electroCore is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$1.8m in 2026. The company is therefore projected to breakeven around 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? 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.
Underlying developments driving electroCore's growth isn’t the focus of this broad overview, however, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we’d like to point out is that electroCore has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
There are too many aspects of electroCore to cover in one brief article, but the key fundamentals for the company can all be found in one place – electroCore's company page on Simply Wall St. We've also put together a list of essential aspects you should look at:
Valuation: What is electroCore 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 electroCore 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 electroCore’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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
