Yahoo Finance Iteris, Inc. (NASDAQ:ITI) Is Expected To Breakeven
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Iteris, Inc.’s (NASDAQ:ITI): Iteris, Inc. provides intelligent transportation systems technology solutions worldwide. The US$154m market-cap posted a loss in its most recent financial year of -US$3.8m and a latest trailing-twelve-month loss of -US$7.8m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on ITI’s investors mind, I’ve decided to gauge market sentiment. Below I will provide a high-level summary of the industry analysts’ expectations for ITI.
See our latest analysis for Iteris
According to the 5 industry analysts covering ITI, the consensus is breakeven is near. They expect the company to post a final loss in 2020, before turning a profit of US$13m in 2021. ITI is therefore projected to breakeven around 2 years from today. How fast will ITI 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 106% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, ITI may become profitable much later than analysts predict.
Underlying developments driving ITI’s growth isn’t the focus of this broad overview, but, 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.
One thing I’d like to point out is that ITI 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. ITI 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 ITI which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at ITI, take a look at ITI’s company page on Simply Wall St. I’ve also compiled a list of pertinent aspects you should further research:
Historical Track Record: What has ITI’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 Iteris’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.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.
