We feel now is a pretty good time to analyse Rockwell Medical, Inc.'s (NASDAQ:RMTI) business as it appears the company may be on the cusp of a considerable accomplishment. Rockwell Medical, Inc., together with its subsidiaries, operates as a healthcare company that engages in the development, manufacture, commercialization, and distribution of various hemodialysis products for dialysis providers worldwide. The US$113m market-cap company’s loss lessened since it announced a US$8.6m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$4.9m, as it approaches breakeven. Many investors are wondering about the rate at which Rockwell Medical will turn a profit, with the big question being “when will the company breakeven?” 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 Rockwell Medical

Rockwell Medical is bordering on breakeven, according to the 2 American Medical Equipment analysts. They expect the company to post a final loss in 2024, before turning a profit of US$2.4m in 2025. The company is therefore projected to breakeven just over a year 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 170%, 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 Rockwell Medical's upcoming projects, but, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 38% of equity. This means that it 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 Rockwell Medical 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 Rockwell Medical, take a look at Rockwell Medical's company page on Simply Wall St. We've also compiled a list of key aspects you should look at:

1. Historical Track Record: What has Rockwell Medical's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Rockwell Medical'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.