Titomic Limited (ASX:TTT): Are Analysts Optimistic?
We feel now is a pretty good time to analyse Titomic Limited's (ASX:TTT) business as it appears the company may be on the cusp of a considerable accomplishment. Titomic Limited engages in additive manufacturing activities in Australia. The AU$45m market-cap company announced a latest loss of AU$17m on 30 June 2021 for its most recent financial year result. As path to profitability is the topic on Titomic's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
View our latest analysis for Titomic
According to some industry analysts covering Titomic, breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of AU$100k in 2024. So, the company is predicted to breakeven approximately 3 years 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 66%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Given this is a high-level overview, we won’t go into details of Titomic's upcoming projects, however, take into account that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we’d like to point out is that Titomic has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
There are key fundamentals of Titomic which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Titomic, take a look at Titomic's company page on Simply Wall St. We've also put together a list of essential aspects you should further research:
Valuation: What is Titomic 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 Titomic 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 Titomic’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.
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.
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