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TFF Pharmaceuticals, Inc. (NASDAQ:TFFP): Are Analysts Optimistic?

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·3 min read
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We feel now is a pretty good time to analyse TFF Pharmaceuticals, Inc.'s (NASDAQ:TFFP) business as it appears the company may be on the cusp of a considerable accomplishment. TFF Pharmaceuticals, Inc., an early-stage biopharmaceutical company, focuses on developing and commercializing drug products based on its patented Thin Film Freezing, or TFF, technology platform in the United States and Australia. The US$197m market-cap company posted a loss in its most recent financial year of US$19m and a latest trailing-twelve-month loss of US$27m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on TFF Pharmaceuticals' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for TFF Pharmaceuticals

According to the 3 industry analysts covering TFF Pharmaceuticals, the consensus is that breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of US$12m in 2024. The company is therefore projected to breakeven around 2 years from today. 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 55%, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

earnings-per-share-growth
earnings-per-share-growth

Given this is a high-level overview, we won’t go into details of TFF Pharmaceuticals' upcoming projects, though, bear in mind that typically 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 TFF Pharmaceuticals 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. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

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

  1. Valuation: What is TFF Pharmaceuticals 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 TFF Pharmaceuticals is currently mispriced by the market.

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

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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