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Endo International plc (NASDAQ:ENDP): Is Breakeven Near?

Endo International plc’s (NASDAQ:ENDP): Endo International plc, a specialty pharmaceutical company, manufactures and sells generic and branded pharmaceuticals in the United States, Canada, and internationally. With the latest financial year loss of -US$1.23B and a trailing-twelve month of -US$1.57B, the US$1.46B market-cap amplifies its loss by moving further away from its breakeven target. As path to profitability is the topic on ENDP’s investors mind, I’ve decided to gauge market sentiment. I’ve put together a brief outline of industry analyst expectations for ENDP, its year of breakeven and its implied growth rate.

See our latest analysis for Endo International

Expectation from analysts is ENDP is on the verge of breakeven. They anticipate the company to incur a final loss in 2018, before generating positive profits of US$17.23M in 2019. Therefore, ENDP is expected to breakeven roughly a few months from now. In order to meet this breakeven date, I calculated the rate at which ENDP must grow year-on-year. It turns out an average annual growth rate of 56.89% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

NasdaqGS:ENDP Past Future Earnings Jun 7th 18
NasdaqGS:ENDP Past Future Earnings Jun 7th 18

I’m not going to go through company-specific developments for ENDP given that this is a high-level summary, though, take into account that typically pharmaceuticals, depending on the stage of product development, have irregular periods of cash flow. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

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One thing I would like to bring into light with ENDP is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are key fundamentals of ENDP which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at ENDP, take a look at ENDP’s company page on Simply Wall St. I’ve also compiled a list of relevant aspects you should look at:

  1. Valuation: What is ENDP 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 ENDP is currently mispriced by the market.

  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Endo International’s board and the CEO’s back ground.

  3. 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.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.