Yahoo Finance Avadel Pharmaceuticals plc (NASDAQ:AVDL) Is Expected To Breakeven In The Near Future
Avadel Pharmaceuticals plc (NASDAQ:AVDL) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Avadel Pharmaceuticals plc operates as a biopharmaceutical company in the United States. The US$1.5b market-cap company announced a latest loss of US$160m on 31 December 2023 for its most recent financial year result. As path to profitability is the topic on Avadel Pharmaceuticals' investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
Check out our latest analysis for Avadel Pharmaceuticals
Avadel Pharmaceuticals is bordering on breakeven, according to the 9 American Pharmaceuticals analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$91m in 2025. So, the company is predicted to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 57% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for Avadel Pharmaceuticals given that this is a high-level summary, but, take into account that typically a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business is in. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.
One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 37% 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 Avadel Pharmaceuticals to cover in one brief article, but the key fundamentals for the company can all be found in one place – Avadel Pharmaceuticals' company page on Simply Wall St. We've also compiled a list of essential factors you should further research:
Valuation: What is Avadel Pharmaceuticals 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 Avadel Pharmaceuticals 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 Avadel Pharmaceuticals’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.
