iCAD, Inc. (NASDAQ:ICAD) Is Expected To Breakeven In The Near Future
We feel now is a pretty good time to analyse iCAD, Inc.'s (NASDAQ:ICAD) business as it appears the company may be on the cusp of a considerable accomplishment. iCAD, Inc. provides image analysis, workflow solutions, and radiation therapy for the treatment of cancer in the United States. The company’s loss has recently broadened since it announced a US$11m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$15m, moving it further away from 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.
See our latest analysis for iCAD
iCAD is bordering on breakeven, according to the 6 American Healthcare Services analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$4.3m in 2024. Therefore, the company is expected to breakeven roughly 2 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 86% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving iCAD's growth isn’t the focus of this broad overview, though, bear in mind that generally healthcare tech companies, depending on the stage of product development, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.
Before we wrap up, there’s one aspect worth mentioning. iCAD currently has no debt on its balance sheet, which is quite unusual for a cash-burning healthcare tech 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 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 put together a list of important factors you should further examine:
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.
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.
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.
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