When Will SI-BONE, Inc. (NASDAQ:SIBN) Become Profitable?
With the business potentially at an important milestone, we thought we'd take a closer look at SI-BONE, Inc.'s (NASDAQ:SIBN) future prospects. SI-BONE, Inc., a medical device company, develops implantable devices used to solve musculoskeletal disorders of the sacropelvic anatomy in the United States and internationally. On 31 December 2023, the US$832m market-cap company posted a loss of US$43m for its most recent financial year. The most pressing concern for investors is SI-BONE's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
See our latest analysis for SI-BONE
Consensus from 8 of the American Medical Equipment analysts is that SI-BONE is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$3.5m in 2026. So, the company is predicted to breakeven approximately 2 years from now. 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 40% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving SI-BONE's growth isn’t the focus of this broad overview, but, take into account that typically 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 aspect worth mentioning. The company has managed its capital prudently, with debt making up 21% 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:
This article is not intended to be a comprehensive analysis on SI-BONE, so if you are interested in understanding the company at a deeper level, take a look at SI-BONE's company page on Simply Wall St. We've also compiled a list of relevant aspects you should further research:
Historical Track Record: What has SI-BONE'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 SI-BONE'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.
