Imricor Medical Systems, Inc.'s (ASX:IMR): Imricor Medical Systems, Inc., a medical device company, designs, manufactures, sells, and distributes magnetic resonance imaging (MRI) compatible products for cardiac catheter ablation procedures in the United States and Europe. The AU$131m market-cap company announced a latest loss of -US$13.3m on 31 December 2019 for its most recent financial year result. As path to profitability is the topic on IMR’s investors mind, I’ve decided to gauge market sentiment. Below I will provide a high-level summary of the industry analysts’ expectations for IMR.
According to the industry analysts covering IMR, breakeven is near. They expect the company to post a final loss in 2021, before turning a profit of US$8.0m in 2022. IMR is therefore projected to breakeven around 2 years from now. How fast will IMR have to grow each year in order to reach the breakeven point by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 67% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, IMR may become profitable much later than analysts predict.
I’m not going to go through company-specific developments for IMR given that this is a high-level summary, but, bear in mind that generally 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 IMR has no debt on its balance sheet, which is rare for a loss-making loss-making, growth company, which typically has high debt relative to its equity. IMR currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
There are key fundamentals of IMR which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at IMR, take a look at IMR’s company page on Simply Wall St. I’ve also put together a list of pertinent aspects you should further research:
- Historical Track Record: What has IMR'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 Imricor Medical Systems’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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