Yahoo Finance Analysts Expect Breakeven For Alphatec Holdings, Inc. (NASDAQ:ATEC) Before Long
We feel now is a pretty good time to analyse Alphatec Holdings, Inc.'s (NASDAQ:ATEC) business as it appears the company may be on the cusp of a considerable accomplishment. Alphatec Holdings, Inc., a medical technology company, designs, develops, and advances technologies for the surgical treatment of spinal disorders. The company’s loss has recently broadened since it announced a US$57m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$69m, moving it further away from breakeven. As path to profitability is the topic on Alphatec Holdings' investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
Check out our latest analysis for Alphatec Holdings
According to the 5 industry analysts covering Alphatec Holdings, the consensus is that breakeven is near. They expect the company to post a final loss in 2022, before turning a profit of US$14m in 2023. The company is therefore projected to breakeven around 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 57% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving Alphatec Holdings' growth isn’t the focus of this broad overview, though, keep in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before we wrap up, there’s one issue worth mentioning. Alphatec Holdings currently has a debt-to-equity ratio of over 2x. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.
Next Steps:
There are key fundamentals of Alphatec Holdings which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Alphatec Holdings, take a look at Alphatec Holdings' company page on Simply Wall St. We've also put together a list of important factors you should further research:
Historical Track Record: What has Alphatec Holdings' 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 Alphatec Holdings' 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.
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. 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.
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