Yahoo Finance Analysts Expect Breakeven For ImpediMed Limited (ASX:IPD)
ImpediMed Limited’s (ASX:IPD): ImpediMed Limited, together with its subsidiaries, develops, manufactures, and sells bioimpedance instruments, consumables, and software in Australia, North America, and internationally. The AU$167m market-cap company announced a latest loss of -AU$27m on 30 June 2018 for its most recent financial year result. As path to profitability is the topic on IPD’s investors mind, I’ve decided to gauge market sentiment. In this article, I will touch on the expectations for IPD’s growth and when analysts expect the company to become profitable.
Check out our latest analysis for ImpediMed
According to the industry analysts covering IPD, breakeven is near. They expect the company to post a final loss in 2020, before turning a profit of AU$13m in 2021. So, IPD is predicted to breakeven approximately a couple of months from now! What rate will IPD 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 80%, which is rather optimistic! If this rate turns out to be too aggressive, IPD may become profitable much later than analysts predict.
Underlying developments driving IPD’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 IPD 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. IPD 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 too many aspects of IPD to cover in one brief article, but the key fundamentals for the company can all be found in one place – IPD’s company page on Simply Wall St. I’ve also put together a list of key factors you should look at:
Historical Track Record: What has IPD’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 ImpediMed’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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
