Dynatronics Corporation's (NASDAQ:DYNT): Dynatronics Corporation designs, manufactures, markets, and distributes orthopedic soft goods, medical supplies, and physical therapy and rehabilitation equipment in the United States and internationally. The US$12m market-cap posted a loss in its most recent financial year of -US$3.5m and a latest trailing-twelve-month loss of -US$2.0m shrinking the gap between loss and breakeven. As path to profitability is the topic on DYNT’s investors mind, I’ve decided to gauge market sentiment. I’ve put together a brief outline of industry analyst expectations for DYNT, its year of breakeven and its implied growth rate.
According to the 4 industry analysts covering DYNT, the consensus is breakeven is near. They expect the company to post a final loss in 2021, before turning a profit of US$642k in 2022. So, DYNT is predicted to breakeven approximately 3 years from now. In order to meet this breakeven date, I calculated the rate at which DYNT must grow year-on-year. It turns out an average annual growth rate of 45% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, I won’t go into details of DYNT’s upcoming projects, however, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing I’d like to point out is that DYNT has managed its capital judiciously, with debt making up 25% of equity. This means that DYNT has predominantly funded its operations from equity capital,and its low debt obligation reduces the risk around investing in the loss-making company.
There are too many aspects of DYNT to cover in one brief article, but the key fundamentals for the company can all be found in one place – DYNT’s company page on Simply Wall St. I’ve also put together a list of pertinent factors you should look at:
- Valuation: What is DYNT 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 DYNT is currently mispriced by the market.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Dynatronics’s board and the CEO’s back ground.
- 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.
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