MiMedx Group, Inc. (NASDAQ:MDXG) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. MiMedx Group, Inc. develops and distributes placental tissue allografts for various sectors of healthcare. With the latest financial year loss of US$37m and a trailing-twelve-month loss of US$2.5m, the US$821m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on MiMedx Group's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts' expectations for the company.

Check out our latest analysis for MiMedx Group

MiMedx Group is bordering on breakeven, according to the 5 American Biotechs analysts. They expect the company to post a final loss in 2022, before turning a profit of US$12m in 2023. The company is therefore projected to breakeven around 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 49% 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.

Given this is a high-level overview, we won't go into details of MiMedx Group's upcoming projects, though, keep in mind that by and large biotechs, depending on the stage of product development, have irregular periods of cash flow. So, 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 issue worth mentioning. MiMedx Group currently has a relatively high level of debt. Generally, the rule of thumb is debt shouldn't exceed 40% of your equity, which in MiMedx Group's case is 52%. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.

Next Steps:

There are too many aspects of MiMedx Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – MiMedx Group's company page on Simply Wall St. We've also put together a list of pertinent aspects you should further research:

1. Valuation: What is MiMedx Group 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 MiMedx Group 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 MiMedx Group'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.