When Will Numinus Wellness Inc. (TSE:NUMI) Turn A Profit?

Numinus Wellness Inc. (TSE:NUMI) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Numinus Wellness Inc. provides psychedelic-assisted psychotherapy products and services in Canada and the United States. The CA$13m market-cap company’s loss lessened since it announced a CA$30m loss in the full financial year, compared to the latest trailing-twelve-month loss of CA$27m, as it approaches breakeven. The most pressing concern for investors is Numinus Wellness' path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

View our latest analysis for Numinus Wellness

Numinus Wellness is bordering on breakeven, according to some Canadian Pharmaceuticals analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of CA$430k in 2026. So, the company is predicted to breakeven approximately 2 years 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 73%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

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We're not going to go through company-specific developments for Numinus Wellness given that this is a high-level summary, but, keep in mind that by and large pharmaceuticals, depending on the stage of product development, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 2.1% of equity. This means that it 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 Numinus Wellness to cover in one brief article, but the key fundamentals for the company can all be found in one place – Numinus Wellness' company page on Simply Wall St. We've also compiled a list of pertinent factors you should look at:

1. Historical Track Record: What has Numinus Wellness' 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 Numinus Wellness' 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.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com