CorMedix Inc. (NASDAQ:CRMD): Is Breakeven Near?

With the business potentially at an important milestone, we thought we'd take a closer look at CorMedix Inc.'s (NASDAQ:CRMD) future prospects. CorMedix Inc., a biopharmaceutical company, focuses on developing and commercializing therapeutic products for the prevention and treatment of infectious and inflammatory diseases in the United States and internationally. The US$531m market-cap company’s loss lessened since it announced a US$44m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$21m, as it approaches breakeven. Many investors are wondering about the rate at which CorMedix will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Check out our latest analysis for CorMedix

Consensus from 4 of the American Pharmaceuticals analysts is that CorMedix is on the verge of breakeven. They anticipate the company to incur a final loss in 2021, before generating positive profits of US$21m in 2022. So, the company is predicted to breakeven just over a year 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 59%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

earnings-per-share-growth

Underlying developments driving CorMedix's growth isn’t the focus of this broad overview, 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. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

One thing we’d like to point out is that CorMedix has no debt on its balance sheet, which is rare for a loss-making pharma, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are too many aspects of CorMedix to cover in one brief article, but the key fundamentals for the company can all be found in one place – CorMedix's company page on Simply Wall St. We've also compiled a list of essential factors you should look at:

1. Historical Track Record: What has CorMedix's 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.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on CorMedix'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.

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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