Yahoo Finance Premaitha Health PLC’s (LON:NIPT) Shift From Loss To Profit
Premaitha Health PLC’s (LON:NIPT): Premaitha Health PLC, a molecular diagnostic company, develops tests for non-invasive prenatal screening and other applications in the United Kingdom and internationally. With the latest financial year loss of -UK£7.86m and a trailing-twelve month of -UK£9.21m, the UK£25.06m market-cap amplifies its loss by moving further away from its breakeven target. The most pressing concern for investors is NIPT’s path to profitability – when will it breakeven? Below I will provide a high-level summary of the industry analysts’ expectations for NIPT.
See our latest analysis for Premaitha Health
Expectation from Medical Equipment analysts is NIPT is on the verge of breakeven. They expect the company to post a final loss in -1, before turning a profit of UK£0 in . Therefore, NIPT is expected to breakeven roughly a couple of months from now! In order to meet this breakeven date, I calculated the rate at which NIPT must grow year-on-year. It turns out an average annual growth rate of 42.00% is expected, which is rather optimistic! If this rate turns out to be too aggressive, NIPT may become profitable much later than analysts predict.
I’m not going to go through company-specific developments for NIPT given that this is a high-level summary, though, keep 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 I would like to bring into light with NIPT is its debt-to-equity ratio of over 2x. Typically, debt shouldn’t exceed 40% of your equity, which in NIPT’s case, it has significantly overshot. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.
Next Steps:
There are key fundamentals of NIPT 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 NIPT, take a look at NIPT’s company page on Simply Wall St. I’ve also compiled a list of relevant factors you should further examine:
Historical Track Record: What has NIPT’s 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 Premaitha Health’s board and the CEO’s back ground.
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.
