Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Sensus Healthcare, Inc.'s (NASDAQ:SRTS): Sensus Healthcare, Inc. manufactures and markets superficial radiation therapy devices to healthcare providers worldwide. With the latest financial year loss of -US$2.0m and a trailing-twelve month of -US$3.0m, the US$90m market-cap amplifies its loss by moving further away from its breakeven target. The most pressing concern for investors is SRTS’s path to profitability – when will it breakeven? I’ve put together a brief outline of industry analyst expectations for SRTS, its year of breakeven and its implied growth rate.
According to the 7 industry analysts covering SRTS, the consensus is breakeven is near. They expect the company to post a final loss in 2019, before turning a profit of US$2.5m in 2020. Therefore, SRTS is expected to breakeven roughly a couple of months from now! What rate will SRTS have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 110%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving SRTS’s growth isn’t the focus of this broad overview, however, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing I’d like to point out is that SRTS has no debt on its balance sheet, which is quite unusual for a cash-burning loss-making, growth company, which usually has a high level of debt relative to its equity. This means that SRTS has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
There are too many aspects of SRTS to cover in one brief article, but the key fundamentals for the company can all be found in one place – SRTS’s company page on Simply Wall St. I’ve also compiled a list of relevant aspects you should further examine:
- Valuation: What is SRTS 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 SRTS 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 Sensus Healthcare’s board and the CEO’s back ground.
- 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.