Loss-Making ASP Isotopes Inc. (NASDAQ:ASPI) Expected To Breakeven In The Medium-Term

Simply Wall St.
24 Mar

With the business potentially at an important milestone, we thought we'd take a closer look at ASP Isotopes Inc.'s (NASDAQ:ASPI) future prospects. ASP Isotopes Inc., a development stage advanced materials company, focuses on the production, distribution, marketing, and sale of isotopes. With the latest financial year loss of US$16m and a trailing-twelve-month loss of US$30m, the US$299m market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is ASP Isotopes' path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

According to some industry analysts covering ASP Isotopes, breakeven is near. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$4.1m in 2026. The company is therefore projected to breakeven just over a year from now. 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 is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

NasdaqCM:ASPI Earnings Per Share Growth March 24th 2025

We're not going to go through company-specific developments for ASP Isotopes given that this is a high-level summary, however, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Check out our latest analysis for ASP Isotopes

Before we wrap up, there’s one issue worth mentioning. ASP Isotopes currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in ASP Isotopes' case is 76%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of ASP Isotopes to cover in one brief article, but the key fundamentals for the company can all be found in one place – ASP Isotopes' company page on Simply Wall St. We've also put together a list of key factors you should look at:

  1. Historical Track Record: What has ASP Isotopes' 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 ASP Isotopes' 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.

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

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.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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