When Will Strata Critical Medical, Inc. (NASDAQ:SRTA) Breakeven?
With the business potentially at an important milestone, we thought we'd take a closer look at Strata Critical Medical, Inc.'s (NASDAQ:SRTA) future prospects. Strata Critical Medical, Inc. provides time critical logistics solutions and specialized medical services to healthcare providers across the United States. The US$399m market-cap company posted a loss in its most recent financial year of US$27m and a latest trailing-twelve-month loss of US$33m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which Strata Critical Medical will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
Strata Critical Medical is bordering on breakeven, according to the 2 American Healthcare analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$7.0m in 2026. So, the company is predicted to breakeven just over a year 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 171% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Given this is a high-level overview, we won’t go into details of Strata Critical Medical's upcoming projects, though, 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.
View our latest analysis for Strata Critical Medical
One thing we’d like to point out is that Strata Critical Medical has no debt on its balance sheet, which is rare for a loss-making 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 Strata Critical Medical to cover in one brief article, but the key fundamentals for the company can all be found in one place – Strata Critical Medical's company page on Simply Wall St. We've also put together a list of pertinent factors you should look at:
- Historical Track Record: What has Strata Critical Medical'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 Strata Critical Medical'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.