NeuroOne Medical Technologies Corporation's (NASDAQ:NMTC) Shift From Loss To Profit

With the business potentially at an important milestone, we thought we'd take a closer look at NeuroOne Medical Technologies Corporation's (NASDAQ:NMTC) future prospects. NeuroOne Medical Technologies Corporation, a medical technology company, provides solutions for continuous electroencephalogram (cEEG) and stereoelectrocencephalography (sEEG) recording in the United States. The company’s loss has recently broadened since it announced a US$3.6m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$7.4m, moving it further away from breakeven. The most pressing concern for investors is NeuroOne Medical Technologies' 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.

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According to the 3 industry analysts covering NeuroOne Medical Technologies, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2028, before generating positive profits of US$5.4m in 2029. The company is therefore projected to breakeven around 3 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2029? Working backwards from analyst estimates, it turns out that they expect the company to grow 57% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving NeuroOne Medical Technologies' growth isn’t the focus of this broad overview, though, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

View our latest analysis for NeuroOne Medical Technologies

Before we wrap up, there’s one aspect worth mentioning. NeuroOne Medical Technologies currently has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of 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 key fundamentals of NeuroOne Medical Technologies 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 NeuroOne Medical Technologies, take a look at NeuroOne Medical Technologies' company page on Simply Wall St. We've also compiled a list of important factors you should further examine:

1. Valuation: What is NeuroOne Medical Technologies 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 NeuroOne Medical Technologies 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 NeuroOne Medical Technologies’s board and the CEO’s background.
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.

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