Numinus Wellness Inc. (TSE:NUMI) Is Expected To Breakeven In The Near Future
Simply Wall St · 09/15 11:15

We feel now is a pretty good time to analyse Numinus Wellness Inc.'s (TSE:NUMI) business as it appears the company may be on the cusp of a considerable accomplishment. Numinus Wellness Inc. provides solutions to develop and deliver psychedelic-assisted psychotherapy and transform the mental health. With the latest financial year loss of CA$45m and a trailing-twelve-month loss of CA$46m, the CA$51m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which Numinus Wellness will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Numinus Wellness

According to some industry analysts covering Numinus Wellness, breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of CA$8.8m in 2026. The company is therefore projected to breakeven around 3 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 63% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

TSX:NUMI Earnings Per Share Growth September 15th 2023

Given this is a high-level overview, we won’t go into details of Numinus Wellness' upcoming projects, though, bear in mind that by and large a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business is in. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 1.1% 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:

This article is not intended to be a comprehensive analysis on Numinus Wellness, so if you are interested in understanding the company at a deeper level, take a look at Numinus Wellness' company page on Simply Wall St. We've also put together a list of key aspects you should further examine:

  1. Historical Track Record: What has Numinus Wellness' 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 Numinus Wellness' 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.