Yahoo Finance Aldeyra Therapeutics, Inc. (NASDAQ:ALDX) Is About To Turn The Corner
Aldeyra Therapeutics, Inc. (NASDAQ:ALDX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Aldeyra Therapeutics, Inc., a biotechnology company, develops and commercializes medicines for immune-mediated diseases. On 31 December 2023, the US$193m market-cap company posted a loss of US$38m for its most recent financial year. As path to profitability is the topic on Aldeyra Therapeutics' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
View our latest analysis for Aldeyra Therapeutics
According to the 7 industry analysts covering Aldeyra Therapeutics, the consensus is that breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of US$3.7m in 2024. So, the company is predicted to breakeven approximately 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 58% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of Aldeyra Therapeutics' upcoming projects, though, take into account that by and large a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 13% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of Aldeyra Therapeutics to cover in one brief article, but the key fundamentals for the company can all be found in one place – Aldeyra Therapeutics' company page on Simply Wall St. We've also compiled a list of important factors you should look at:
Valuation: What is Aldeyra Therapeutics 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 Aldeyra Therapeutics 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 Aldeyra Therapeutics’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.
