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When Will ikeGPS Group Limited (NZSE:IKE) Breakeven?

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·3 min read
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ikeGPS Group Limited (NZSE:IKE) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. ikeGPS Group Limited, together with its subsidiaries, engages in the design, sale, and delivery of a solution for the collection, analysis, and management of distribution assets for electric utilities and communications companies in the United States. The NZ$105m market-cap company announced a latest loss of NZ$7.9m on 31 March 2022 for its most recent financial year result. The most pressing concern for investors is ikeGPS Group's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for ikeGPS Group

ikeGPS Group is bordering on breakeven, according to some New Zealander Electronic analysts. They expect the company to post a final loss in 2024, before turning a profit of NZ$700k in 2025. Therefore, the company is expected to breakeven roughly 3 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 69% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

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

Underlying developments driving ikeGPS Group's growth isn’t the focus of this broad overview, however, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. ikeGPS Group currently has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

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

  1. Historical Track Record: What has ikeGPS Group'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 ikeGPS Group'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.

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

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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