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Revasum, Inc. (ASX:RVS): Is Breakeven Near?

Simply Wall St
·3 min read

Revasum, Inc.'s (ASX:RVS): Revasum, Inc. designs, develops, manufactures, and markets a portfolio of semiconductor processing equipment in Asia, North America, and Europe. On 05 January 2020, the AU$31m market-cap posted a loss of -US$14.9m for its most recent financial year. As path to profitability is the topic on RVS’s investors mind, I’ve decided to gauge market sentiment. Below I will provide a high-level summary of the industry analysts’ expectations for RVS.

View our latest analysis for Revasum

RVS is bordering on breakeven, according to the 2 Semiconductor analysts. They anticipate the company to incur a final loss in 2020, before generating positive profits of US$2.9m in 2021. So, RVS is predicted to breakeven approximately a couple of months from now! How fast will RVS have to grow each year in order to reach the breakeven point by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 81% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

ASX:RVS Past and Future Earnings May 29th 2020
ASX:RVS Past and Future Earnings May 29th 2020

I’m not going to go through company-specific developments for RVS given that this is a high-level summary, though, keep 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 I wrap up, there’s one aspect worth mentioning. RVS has managed its capital prudently, with debt making up 9.1% of equity. This means that RVS 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 RVS to cover in one brief article, but the key fundamentals for the company can all be found in one place – RVS’s company page on Simply Wall St. I’ve also put together a list of key factors you should further research:

  1. Historical Track Record: What has RVS'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 Revasum’s board and the CEO’s back ground.

  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.

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This article by Simply Wall St is general in nature. 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. Thank you for reading.