OMNIQ Corp. (NASDAQ:OMQS): Are Analysts Optimistic?
OMNIQ Corp. (NASDAQ:OMQS) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. OMNIQ Corp. provides artificial intelligence based solutions in the United States. The US$5.9m market-cap company posted a loss in its most recent financial year of US$14m and a latest trailing-twelve-month loss of US$16m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on OMNIQ's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
Check out our latest analysis for OMNIQ
OMNIQ is bordering on breakeven, according to some American IT analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$620k in 2025. Therefore, the company is expected to breakeven just over a year from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 97%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of OMNIQ's upcoming projects, though, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before we wrap up, there’s one issue worth mentioning. OMNIQ currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.
Next Steps:
This article is not intended to be a comprehensive analysis on OMNIQ, so if you are interested in understanding the company at a deeper level, take a look at OMNIQ's company page on Simply Wall St. We've also put together a list of pertinent factors you should further research:
Valuation: What is OMNIQ 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 OMNIQ 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 OMNIQ’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.
