Analysts Expect Breakeven For ImpediMed Limited (ASX:IPD) Before Long
ImpediMed Limited (ASX:IPD) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. ImpediMed Limited, a medical technology company, develops, manufactures, and sells bioimpedance spectroscopy (BIS) devices and software services in Australia, North America, and internationally. The AU$343m market-cap company announced a latest loss of AU$21m on 30 June 2023 for its most recent financial year result. As path to profitability is the topic on ImpediMed's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
See our latest analysis for ImpediMed
ImpediMed is bordering on breakeven, according to the 4 Australian Medical Equipment analysts. They expect the company to post a final loss in 2025, before turning a profit of AU$10m in 2026. So, the company is predicted to breakeven approximately 3 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 84% is expected, which signals high confidence from analysts. 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, we won’t go into details of ImpediMed's upcoming projects, though, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we’d like to point out is that ImpediMed has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
Next Steps:
There are key fundamentals of ImpediMed which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at ImpediMed, take a look at ImpediMed's company page on Simply Wall St. We've also put together a list of pertinent aspects you should further research:
Historical Track Record: What has ImpediMed's 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.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on ImpediMed's board and the CEO’s background.
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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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.
