We think now is a good time to analyze ReWalk Robotics Ltd. (NASDAQ:LFWD) business, as the company seems poised to achieve big things. Medical device manufacturer ReWalk Robotics Ltd. designs, develops, and commercializes technologies that enable rehabilitation and mobility and wellness in daily life for people with physical and neurological conditions in the United States, Europe, Asia Pacific, and around the world. The $33 million market cap company posted a loss of $22 million in its most recent fiscal year, and a trailing 12-month loss of $24 million, widening the gap between loss and breakeven. The most pressing concern for investors is ReWalk Robotics’ path to profitability, i.e., when will it reach breakeven? In this article, we touch on the company’s growth expectations and when analysts expect it to reach profitability.
Check out our latest analysis for ReWalk Robotics
The consensus of two American medical device analysts is that ReWalk Robotics is close to breaking even. The analysts expect the company to make a final loss in 2025 and a profit of $7 million in 2026. Thus, the company is expected to break even about two years from today. How fast would the company need to grow each year to break even by 2026? Working backwards from analysts’ forecasts, the company expects to grow 66% year-over-year on average, which is very strong. A lower growth rate in the business would mean profits coming in later than expected.
NasdaqCM:LFWD Earnings per share growth rate July 27, 2024
As this is an overview, we won’t go into the details of ReWalk Robotics’ upcoming projects, but keep in mind that in general, high growth rates are not uncommon, especially when a company is in an investment period.
One final point worth mentioning: ReWalk Robotics currently has no debt on its balance sheet. This is highly unusual for a cash-burning growth company that typically has a high debt-to-equity ratio. This means the company is entirely equity-backed and has no debt burden. This aspect reduces the risk associated with investing in loss-making companies.
Next steps:
There are too many aspects of ReWalk Robotics to cover in one short article, but you can find all of the important basic information about the company in one place: ReWalk Robotics’ company page on Simply Wall St. We’ve also compiled a list of key aspects worth exploring further.
Past performance: How has ReWalk Robotics performed so far? Learn more in our past performance analysis and see a free visual representation of our analysis for a clearer understanding. Management team: With an experienced management team at the helm, we have more confidence in our business. See the biographies of ReWalk Robotics’ board members and CEO. Other high-performing stocks: Are there other stocks with a proven track record that offer better prospects? Check out our free list of these great stocks here.
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This article by Simply Wall St is of general nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology, and our articles are not intended as financial advice. It is not a recommendation to buy or sell a stock, and does not take into account your objectives or financial situation. We aim to provide long-term analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned herein.
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