Yahoo Finance Nanoveu Limited's (ASX:NVU) Profit Outlook
Nanoveu Limited (ASX:NVU) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Nanoveu Limited, a technology company, develops and sells nanotechnology applications for consumer devices in the Americas and internationally. The AU$7.1m market-cap company announced a latest loss of AU$2.3m on 31 December 2021 for its most recent financial year result. Many investors are wondering about the rate at which Nanoveu will turn a profit, with the big question being “when will the company 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 Nanoveu
Nanoveu is bordering on breakeven, according to some Australian Electronic analysts. They expect the company to post a final loss in 2022, before turning a profit of AU$200k in 2023. The company is therefore projected to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 134% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving Nanoveu's growth isn’t the focus of this broad overview, though, bear in mind that typically 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 Nanoveu 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 Nanoveu 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 Nanoveu, take a look at Nanoveu's company page on Simply Wall St. We've also compiled a list of pertinent factors you should look at:
Valuation: What is Nanoveu 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 Nanoveu 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 Nanoveu’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.
