Yahoo Finance Breakeven On The Horizon For Cingulate Inc. (NASDAQ:CING)
Cingulate Inc. (NASDAQ:CING) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Cingulate Inc., a clinical-stage biopharmaceutical company, focuses on the development of product candidates for the treatment of attention-deficit/hyperactivity disorder. The US$12m market-cap company announced a latest loss of US$18m on 31 December 2022 for its most recent financial year result. The most pressing concern for investors is Cingulate's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
See our latest analysis for Cingulate
Cingulate is bordering on breakeven, according to the 4 American Pharmaceuticals analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$3.9m in 2025. So, the company is predicted to breakeven approximately 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 58% 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.
Given this is a high-level overview, we won’t go into details of Cingulate's upcoming projects, however, take into account that generally pharmaceuticals, depending on the stage of product development, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.
Before we wrap up, there’s one issue worth mentioning. Cingulate currently has a debt-to-equity ratio of 129%. Typically, 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 around investing in the loss-making company.
Next Steps:
There are key fundamentals of Cingulate 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 Cingulate, take a look at Cingulate's company page on Simply Wall St. We've also compiled a list of important factors you should further research:
Valuation: What is Cingulate 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 Cingulate 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 Cingulate’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.
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.
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