Yahoo Finance Fortress Biotech, Inc.'s (NASDAQ:FBIO) Path To Profitability
With the business potentially at an important milestone, we thought we'd take a closer look at Fortress Biotech, Inc.'s (NASDAQ:FBIO) future prospects. Fortress Biotech, Inc., a biopharmaceutical company, develops and commercializes pharmaceutical and biotechnology products. With the latest financial year loss of US$47m and a trailing-twelve-month loss of US$38m, the US$239m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on Fortress Biotech's 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.
Check out our latest analysis for Fortress Biotech
Consensus from 5 of the American Biotechs analysts is that Fortress Biotech is on the verge of breakeven. They expect the company to post a final loss in 2022, before turning a profit of US$44m in 2023. So, the company is predicted to breakeven just over a year from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 54%, which is extremely buoyant. 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 Fortress Biotech's upcoming projects, though, keep in mind that generally a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.
Before we wrap up, there’s one aspect worth mentioning. 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 Fortress Biotech to cover in one brief article, but the key fundamentals for the company can all be found in one place – Fortress Biotech's company page on Simply Wall St. We've also compiled a list of essential aspects you should further research:
Historical Track Record: What has Fortress Biotech'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 Fortress Biotech'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.
