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With the business potentially at an important milestone, we thought we'd take a closer look at Mirion Technologies, Inc.'s (NYSE:MIR) future prospects. Mirion Technologies, Inc. provides radiation detection, measurement, analysis, and monitoring products and services in the United States, Canada, the United Kingdom, France, Germany, Finland, China, Belgium, Netherlands, Estonia, and Japan. With the latest financial year loss of US$256m and a trailing-twelve-month loss of US$233m, the US$1.5b market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which Mirion Technologies will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
According to the 3 industry analysts covering Mirion Technologies, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2021, before generating positive profits of US$49m in 2022. Therefore, the company is expected to breakeven roughly 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 86% 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.
We're not going to go through company-specific developments for Mirion Technologies given that this is a high-level summary, however, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we would like to bring into light with Mirion Technologies is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Mirion Technologies' case is 46%. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.
This article is not intended to be a comprehensive analysis on Mirion Technologies, so if you are interested in understanding the company at a deeper level, take a look at Mirion Technologies' company page on Simply Wall St. We've also put together a list of key aspects you should further examine:
Valuation: What is Mirion Technologies worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Mirion Technologies is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Mirion Technologies’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.