Security is nigh for Sharps Technology, Inc. (NASDAQ:STSS)

Since the business is potentially at an important stage, we decided to take a closer look Sharps Technology, Inc. (NASDAQ:STSS) future prospects. Sharps Technology Inc., a medical device company, researches, designs, develops, manufactures, distributes and sells safety syringe products in the United States. The US$10 million market capitalization company reported a loss in its last financial year of US$4.7 million and a trailing loss of US$5.4 million for the trailing twelve months, resulting in an even wider gap between loss and profitability . The most pressing concern for investors is Sharps Technology’s path to profitability – when will it break even? We’ve put together a summary of industry analysts’ expectations for the company, its year of profitability and estimated growth rate.

Check out our latest analysis on Sharps Technology

Breakeven is close, according to some industry analysts covering Sharps’ technology. They expect the company to make a final loss in 2021 before generating positive earnings of $190K in 2022. Therefore, the company is expected to break even in approximately 12 months or less. We calculated the rate at which the company would need to grow to meet consensus forecasts predicting profitability within 12 months. It turns out that an average annual growth of 126% is expected, which is quite optimistic! If that rate turns out to be too aggressive, the company could turn profitable much later than analysts’ forecasts.

earnings per share growth

The main developments driving Sharps Technology’s growth are not the focus of this broad review, but note that a generally high growth rate is not unusual, especially when a company is in an investment period.

One thing we’d like to note is that Sharps Technology has no debt on its balance sheet, which is quite unusual for a cash-burning growth company that typically has a high level of debt to equity. The company currently operates entirely from its equity funding and has no debt obligations, reducing concerns about repayments and making it a less risky investment.

Next steps:

There are key fundamentals of Sharps technology that are not covered in this article, but we should emphasize again that this is only a basic overview. For a more comprehensive look at Sharps Technology, check out the Sharps Technology company page on Simply Wall St. We have also compiled a list of relevant factors that you should further investigate:

  1. Valuation: How much is Sharps Technology worth today? Is future growth potential already factored into the price? The intrinsic value infographic in our free research report helps visualize whether Sharps’ technology is currently mispriced by the market.

  2. Management team: An experienced management team at the helm boosts our confidence in the business – see who sits on Sharps Technology’s board and the CEO’s background.

  3. Other High Performance Stocks: Are there other stocks that provide better prospects with proven results? Check out our free list of these great stocks here.

Have feedback on this article? Concerned about content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts, using only an unbiased methodology, and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. We aim to provide you with long-term focused analysis driven by fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or quality materials. Simply Wall St has no position in the stocks mentioned.

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