Market Sentiment Around Loss-Making Duos Technologies Group, Inc. (NASDAQ:DUOT)
With the business potentially at an important milestone, we thought we'd take a closer look at Duos Technologies Group, Inc.'s (NASDAQ:DUOT) future prospects. Duos Technologies Group, Inc. designs, develops, deploys, and operates intelligent technology solutions in North America. With the latest financial year loss of US$6.9m and a trailing-twelve-month loss of US$9.0m, the US$23m market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is Duos Technologies Group's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
View our latest analysis for Duos Technologies Group
According to the 2 industry analysts covering Duos Technologies Group, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$1.8m in 2025. The company is therefore projected to breakeven around 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 76% is expected, 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 Duos Technologies Group given that this is a high-level summary, however, bear in mind that by and large 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. The company has managed its capital judiciously, with debt making up 2.4% 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 Duos Technologies Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – Duos Technologies Group's company page on Simply Wall St. We've also compiled a list of important factors you should further research:
Historical Track Record: What has Duos Technologies 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.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Duos Technologies Group'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.
