【are beans self pollinating】When Can We Expect A Profit From Oasmia Pharmaceutical AB (publ) (STO:OASM)?

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Oasmia Pharmaceutical AB (publ)’s (

STO:OASM

)

: Oasmia Pharmaceutical AB (publ) develops, manufactures, markets, and sells drugs in the field of human and veterinary oncology primarily in Sweden. The company’s loss has recently broadened since it announced a -kr118.0m loss in the full financial year, compared to the latest trailing-twelve-month loss of -kr153.3m, moving it further away from breakeven. As path to profitability is the topic on OASM’s investors mind, I’ve decided to gauge market sentiment. Below I will provide a high-level summary of the industry analysts’ expectations for OASM.

Check out our latest analysis for Oasmia Pharmaceutical

According to the industry analysts covering OASM, breakeven is near. They expect the company to post a final loss in 2019, before turning a profit of kr87m in 2020. So, OASM is predicted to breakeven approximately a few months from now. What rate will OASM have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 116%, which is extremely buoyant. If this rate turns out to be too aggressive, OASM may become profitable much later than analysts predict.

OM:OASM Past Future Earnings February 1st 19

I’m not going to go through company-specific developments for OASM given that this is a high-level summary, though, bear in mind that generally 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 I’d like to point out is that OASM has managed its capital prudently, with debt making up 31% of equity. This means that OASM 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 key fundamentals of OASM which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at OASM, take a look at

OASM’s company page on Simply Wall St

. I’ve also compiled a list of relevant aspects you should further research:

Valuation

: What is OASM 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 OASM 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 Oasmia Pharmaceutical’s board and the CEO’s back ground

.

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

.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at

[email protected]

.

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