AngioDynamics, Inc.’s (NASDAQ:ANGO): AngioDynamics, Inc. designs, manufactures, and sells various medical, surgical, and diagnostic devices for the treatment of peripheral vascular disease, vascular access, and for use in oncology and surgical settings in the United States and internationally. The US$555m market-cap posted a loss in its most recent financial year of -US$11.1m and a latest trailing-twelve-month loss of -US$5.9m shrinking the gap between loss and breakeven. Many investors are wondering the rate at which ANGO will turn a profit, with the big question being “when will the company breakeven?” I’ve put together a brief outline of industry analyst expectations for ANGO, its year of breakeven and its implied growth rate.
ANGO is bordering on breakeven, according to the 3 Medical Equipment analysts. They anticipate the company to incur a final loss in 2021, before generating positive profits of US$4.1m in 2022. ANGO is therefore projected to breakeven around 2 years from today. What rate will ANGO have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 87%, which signals high confidence from analysts. If this rate turns out to be too aggressive, ANGO may become profitable much later than analysts predict.
Given this is a high-level overview, I won’t go into details of ANGO’s upcoming projects, however, bear in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before I wrap up, there’s one aspect worth mentioning. ANGO currently has no debt on its balance sheet, which is rare for a loss-making loss-making, growth company, which typically has high debt relative to its equity. ANGO currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
There are too many aspects of ANGO to cover in one brief article, but the key fundamentals for the company can all be found in one place – ANGO’s company page on Simply Wall St. I’ve also compiled a list of key factors you should further research:
- Valuation: What is ANGO 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 ANGO 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 AngioDynamics’s board and the CEO’s back ground.
- 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.
If you spot an error that warrants correction, please contact the editor at [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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