With the business potentially at an important milestone, we thought we'd take a closer look at electroCore, Inc.'s (NASDAQ:ECOR) future prospects. electroCore, Inc., a commercial stage bioelectronic medicine and wellness company, provides non-invasive vagus nerve stimulation technology platform in the United States, the United Kingdom, and internationally. The US$95m market-cap company posted a loss in its most recent financial year of US$19m and a latest trailing-twelve-month loss of US$13m shrinking the gap between loss and breakeven. As path to profitability is the topic on electroCore'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.

View our latest analysis for electroCore

Consensus from 5 of the American Medical Equipment analysts is that electroCore is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$4.7m in 2026. So, the company is predicted to breakeven approximately 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 70% year-on-year, on average, 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.

Underlying developments driving electroCore's growth isn’t the focus of this broad overview, however, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. electroCore currently has no debt on its balance sheet, which is rare for a loss-making growth company, 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 key fundamentals of electroCore which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at electroCore, take a look at electroCore's company page on Simply Wall St. We've also put together a list of pertinent aspects you should look at:

1. Valuation: What is electroCore 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 electroCore 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 electroCore’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.

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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.