U.S. Markets open in 8 hrs 29 mins
  • S&P Futures

    3,672.75
    +8.25 (+0.23%)
     
  • Dow Futures

    30,000.00
    +68.00 (+0.23%)
     
  • Nasdaq Futures

    12,506.50
    +44.25 (+0.36%)
     
  • Russell 2000 Futures

    1,851.50
    +4.30 (+0.23%)
     
  • Crude Oil

    46.45
    +0.81 (+1.77%)
     
  • Gold

    1,842.10
    +1.00 (+0.05%)
     
  • Silver

    24.16
    +0.02 (+0.07%)
     
  • EUR/USD

    1.2154
    +0.0004 (+0.0365%)
     
  • 10-Yr Bond

    0.9200
    0.0000 (0.00%)
     
  • Vix

    21.28
    +0.11 (+0.52%)
     
  • GBP/USD

    1.3450
    -0.0002 (-0.0161%)
     
  • USD/JPY

    103.9470
    +0.0870 (+0.0838%)
     
  • BTC-USD

    19,227.51
    -30.07 (-0.16%)
     
  • CMC Crypto 200

    377.49
    +3.08 (+0.82%)
     
  • FTSE 100

    6,490.27
    +26.88 (+0.42%)
     
  • Nikkei 225

    26,768.40
    -40.97 (-0.15%)
     

iCAD, Inc. (NASDAQ:ICAD): Are Analysts Optimistic?

Simply Wall St
·3 min read

iCAD, Inc. (NASDAQ:ICAD) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. iCAD, Inc. provides image analysis, workflow solutions, and radiation therapy for the early identification and treatment of cancer in the United States and internationally. The US$242m market-cap company posted a loss in its most recent financial year of US$14m and a latest trailing-twelve-month loss of US$21m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is iCAD's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for iCAD

According to the 5 industry analysts covering iCAD, the consensus is that breakeven is near. They expect the company to post a final loss in 2021, before turning a profit of US$4.9m in 2022. So, the company is predicted to breakeven approximately 2 years from now. 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 71% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

earnings-per-share-growth
earnings-per-share-growth

Underlying developments driving iCAD's growth isn’t the focus of this broad overview, however, take into account that generally a healthcare tech company has lumpy cash flows which are contingent on the product and stage of development the company is in. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 26% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

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

  1. Historical Track Record: What has iCAD'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.

  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on iCAD's 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.

This article by Simply Wall St is general in nature. 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.

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