iAnthus Capital Holdings, Inc.'s (CSE:IAN): iAnthus Capital Holdings, Inc. owns and operates licensed cannabis cultivation, processing, and dispensary facilities in the United States. The CA$348m market-cap company’s loss lessens since it announced a -US$62.0m bottom-line in the full financial year, compared to the latest trailing-twelve-month loss of -US$58.8m, as it approaches breakeven. Many investors are wondering the rate at which IAN will turn a profit, with the big question being “when will the company breakeven?” Below I will provide a high-level summary of the industry analysts’ expectations for IAN.

See our latest analysis for iAnthus Capital Holdings

Consensus from the 8 Pharmaceuticals analysts is IAN is on the verge of breakeven. They anticipate the company to incur a final loss in 2020, before generating positive profits of US$53m in 2021. So, IAN is predicted to breakeven approximately a couple of months from now! In order to meet this breakeven date, I calculated the rate at which IAN must grow year-on-year. It turns out an average annual growth rate of 95% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving IAN’s growth isn’t the focus of this broad overview, though, take into account that generally pharmaceuticals, 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.

Before I wrap up, there’s one aspect worth mentioning. IAN has managed its capital judiciously, with debt making up 18% of equity. This means that IAN 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:

This article is not intended to be a comprehensive analysis on IAN, so if you are interested in understanding the company at a deeper level, take a look at IAN’s company page on Simply Wall St. I’ve also compiled a list of key factors you should look at:

1. Valuation: What is IAN 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 IAN 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 iAnthus Capital Holdings’s board and the CEO’s back ground.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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