Sharps Technology, Inc. (NASDAQ:STSS) is near breakeven

Since the deal may be at an important milestone, we thought we’d take a closer look Sharps Technology, Inc. (NASDAQ:STSS) future prospects. Sharps Technology Inc., a medical device company, researches, designs, develops, manufactures, distributes and sells safety syringe products in the United States. The company, with a market cap of $10 million, posted a loss of $4.7 million in its most recent fiscal year and a loss of $5.4 million over the trailing twelve months, creating an even larger gap between loss and breakeven point. The most pressing concern for investors is Sharps Technology’s path to profitability – when will it break even? We’ve compiled a brief overview of what industry analysts expect from the company, the breakeven year and the implied growth rate.

Check out our latest analysis for Sharps Technology

Breakeven is near, according to some industry analysts covering Sharps Technology. They expect the company to experience a definitive loss in 2021 before posting positive earnings of $190,000 in 2022. Therefore, the company is expected to break even in about 12 months or less. We calculated the rate at which the company must grow to meet consensus forecasts, which predict breakeven within 12 months. It turns out that a compound annual growth rate of 126% is expected, which is pretty optimistic! If this price proves too aggressive, the company may become profitable much later than analysts are predicting.

Earnings per share growth

Earnings per share growth

The underlying developments driving Sharps Technology’s growth are not the focus of this broad overview, but keep in mind that a high growth rate is not uncommon in general, especially when a company is in an investment phase.

One thing we’d like to point out is that Sharps Technology has no debt on its balance sheet, which is quite unusual for a cash-burning growth company that typically has high debt-to-equity ratios. The company currently operates solely on shareholder funding and has no debt obligation, reducing repayment concerns and making it a less risky investment.

Next Steps:

There are important basics of Sharps technology that are not covered in this article, but we must reiterate that this is just a basic overview. For a more comprehensive overview of Sharps Technology, take a look at the Sharps Technology corporate page on Simply Wall Street. We’ve also compiled a list of relevant factors for you to investigate further:

  1. valuation: What is Sharps Technology worth today? Is the future growth potential already priced in? The intrinsic value infographic in our free research report helps visualize if Sharps Technology is currently being mispriced by the market.

  2. Leadership team: An experienced management team at the helm strengthens our confidence in the company – see who sits on Sharps Technology’s board and the background of the CEO.

  3. Other high-performing stocks: Are there other stocks that offer better prospects with a proven track record? Explore our free list of these great stocks here.

Do you have any feedback about this article? Concerned about the content? Get in touch directly with us. Alternatively, send an email to the editorial team (at) simplywallst.com.

This Simply Wall St article is of a general nature. We provide comments based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your goals or financial situation. Our goal is to offer you long-term focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.

Join a paid user research session
You will receive one $30 Amazon Gift Card for 1 hour of your time while you help us create better investment tools for individual investors like you. Sign up here

Source

Leave a Reply

Your email address will not be published. Required fields are marked *