Australia markets open in 9 hours 57 minutes
  • ALL ORDS

    7,324.90
    +36.10 (+0.50%)
     
  • AUD/USD

    0.7030
    -0.0094 (-1.32%)
     
  • ASX 200

    7,064.30
    +31.80 (+0.45%)
     
  • OIL

    87.81
    -4.28 (-4.65%)
     
  • GOLD

    1,791.90
    -23.60 (-1.30%)
     
  • BTC-AUD

    34,382.07
    -673.56 (-1.92%)
     
  • CMC Crypto 200

    574.62
    -16.14 (-2.73%)
     

TFF Pharmaceuticals, Inc. (NASDAQ:TFFP) Is Expected To Breakeven In The Near Future

  • Oops!
    Something went wrong.
    Please try again later.
·3-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

TFF Pharmaceuticals, Inc. (NASDAQ:TFFP) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. TFF Pharmaceuticals, Inc., a clinical stage biopharmaceutical company, focuses on developing and commercializing drug products based on its patented Thin Film Freezing (TFF) technology platform in the United States and Australia. With the latest financial year loss of US$31m and a trailing-twelve-month loss of US$32m, the US$149m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which TFF Pharmaceuticals will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for TFF Pharmaceuticals

TFF Pharmaceuticals is bordering on breakeven, according to the 4 American Pharmaceuticals analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$528k in 2024. Therefore, the company is expected to breakeven roughly 2 years from now. 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 77%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
earnings-per-share-growth

We're not going to go through company-specific developments for TFF Pharmaceuticals given that this is a high-level summary, but, bear in mind that by and large a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business 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 TFF Pharmaceuticals has no debt on its balance sheet, which is quite unusual for a cash-burning pharma, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on TFF Pharmaceuticals, so if you are interested in understanding the company at a deeper level, take a look at TFF Pharmaceuticals' company page on Simply Wall St. We've also put together a list of key factors you should look at:

  1. Valuation: What is TFF 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 TFF Pharmaceuticals 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 TFF Pharmaceuticals’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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting