Agile Therapeutics Inc’s (NASDAQ:AGRX): Agile Therapeutics, Inc., a women’s healthcare company, focuses on the development and commercialization of prescription contraceptive products for women. The US$100.00M market-cap company announced a latest loss of -US$28.30M on 31 December 2017 for its most recent financial year result. The most pressing concern for investors is AGRX’s path to profitability – when will it breakeven? I’ve put together a brief outline of industry analyst expectations for AGRX, its year of breakeven and its implied growth rate.
View our latest analysis for Agile Therapeutics
Expectation from analysts is AGRX is on the verge of breakeven. They expect the company to post a final loss in 2020, before turning a profit of US$94.15M in 2021. AGRX is therefore projected to breakeven around 3 years from now. In order to meet this breakeven date, I calculated the rate at which AGRX must grow year-on-year. It turns out an average annual growth rate of 53.42% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, AGRX may become profitable much later than analysts predict.
Given this is a high-level overview, I won’t go into detail the detail of AGRX’s upcoming projects, but, bear in mind that typically 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.
Before I wrap up, there’s one aspect worth mentioning. AGRX has managed its capital judiciously, with debt making up 29.20% of equity. This means that AGRX 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 AGRX to cover in one brief article, but the key fundamentals for the company can all be found in one place – AGRX’s company page on Simply Wall St. I’ve also put together a list of essential aspects you should further research:
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Valuation: What is AGRX 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 AGRX is currently mispriced by the market.
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Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Agile Therapeutics’s board and the CEO’s back ground.
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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.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.