When Will MannKind Corporation (NASDAQ:MNKD) Breakeven?
We feel now is a pretty good time to analyse MannKind Corporation's (NASDAQ:MNKD) business as it appears the company may be on the cusp of a considerable accomplishment. MannKind Corporation, a biopharmaceutical company, focuses on the development and commercialization of inhaled therapeutic products for endocrine and orphan lung diseases in the United States. With the latest financial year loss of US$87m and a trailing-twelve-month loss of US$47m, the US$1.3b market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on MannKind's investors mind, we've decided to gauge market sentiment. 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 MannKind
MannKind is bordering on breakeven, according to the 5 American Biotechs analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$43m in 2024. So, the company is predicted to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 58% is expected, which is rather optimistic! 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 MannKind's upcoming projects, however, bear in mind that by and large biotechs, 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.
One thing we would like to bring into light with MannKind is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.
Next Steps:
There are too many aspects of MannKind to cover in one brief article, but the key fundamentals for the company can all be found in one place – MannKind's company page on Simply Wall St. We've also compiled a list of key factors you should further examine:
Valuation: What is MannKind 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 MannKind 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 MannKind’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.
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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.
