We think now is a good time to analyze Jupiter Wellness, Inc.’s (NASDAQ:JUPW) matters if the company appears to be on the cusp of significant achievement. Jupiter Wellness, Inc. develops cannabidiol (CBD) based medical therapies and wellness products. The market cap company’s loss of US$21 million has declined since it announced a full-year loss of US$28 million, compared to its last 12-month loss of US$26 million as it approaches break-even. The biggest concern for investors is Jupiter Wellness’s path to profitability – when will it break even? In this article, we’ll look at expectations for the company’s growth and when analysts expect it to turn profitable.
Some US Personal Products analysts expect Jupiter Wellness to be on the cusp of break-even. They expect the company to make a final loss in 2023, before generating a positive profit of US$7.7 million in 2024. The company is therefore expected to break even in 2 years. To meet this break-even date, we calculated the rate at which the company should grow year over year. It turns out that an average annual growth rate of 121% is expected, which is extremely favorable. If this rate proves too aggressive, the company could turn profitable much later than analysts predict.
We will not go into company specific developments for Jupiter Wellness as this is a high level summary, however please note that a high growth rate is generally not uncommon, especially when a company is in an investment period.
Before we wrap up, there is one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 14% of its equity. This means that it has financed its operations primarily with equity, and its low debt obligation reduces the risk of investing in the loss-making company.
This article is not intended to be a comprehensive analysis of Jupiter Wellness, so if you are interested in understanding the business on a deeper level, take a look at the Jupiter Wellness company page on Simply Wall St. We have also compiled a list of Important aspects that you should investigate further:
- valuation: What is Jupiter Wellness 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 Jupiter Wellness is currently being mispriced by the market.
- The management team: An experienced management team at the helm increases our confidence in the company – take a look at who sits on Jupiter Wellness’s board of directors and the background of the CEO.
- Other High-Performing Stocks: Are there other stocks that offer better prospects with a proven track record? Check out our free list of these great stocks here.
Do you have feedback on this article? Concerned about the content? Contact us directly with us. You can also email the editorial team at (at) Simplywallst.com.
This article from 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 as financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your objectives or your financial situation. We strive to provide you with long-term focused analysis powered by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or quality material. Simply Wall St has no position in said stocks.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.